Employee Insurance Programs
Name:
Institution:
Course:
Tutor:
Date:

Employee Insurance Programs
Employers often provide non-wage compensations to their employees that are in aIDition to their usual salaries. These range in value from one employee to another depending on the employee’s position in the constitution. Employers use these benefit insurance programs so as to attract employees and reduce the rate of turnover. Examples of benefits include health insurance, retirement benefits, employee assistance plans, disability income protection, day care, vacation (paid and non-paid), tuition reimbursement, and flexible or alternative working arrangements. While signing the contract of employment, employees not only negotiate on their salaries but also the insurance benefits that they are subject to (McLaughlin, 2004).
Though these insurance benefits are dire costly for the employer to offer, the long-term intangible benefits are worth. The more pleasant the insurance benefits that an organization is ready to offer, the more it will attract and retain highly qualified staff. Competition in the labor market has become stiff and hence every employer is trying to recruit and retain the most qualified nominees in their area. The more the organization progresses, the more it becomes capable of responding to the challenges in the labor market. Examples of benefits available at various organizations include health and retirement benefits, long and short term disability coverage, employee assistance plans, and life insurance.
Health Benefits
Health insurance is sometimes comprehensive such that it includes the employer and his nuclear family. Depending on the position rank, various health aspects are inclusive in the package with a defined upper cost limit. These may include all medical consultations, drugs, inpatient costs, dental and optical charges, and particular medical operations. This ensures that the employees’ health status and those of his kin are catered for just in case.
Employee Assistance Plans
These entail shorter confidential counseling services that help employees deal with psychological issues affecting their lives. They include online information, one-on-one sessions, coaching, and support services which help reduce employee instances of stress, which may in the long run initiate employee absenteeism or turnover. Support services available include those related to dealing with stress of life issues such as bereavement, sickness, barrenness, substance abuse, and anxiety among others (Pogue, 1997).
Retirement Benefits
Also referred to as pension schemes, retirement benefits are meant to provide the employee with income after their retirement. Typically, retirement benefits require a contribution from both employer and employee during the term of employment so as to redeem the benefits upon retirement. Retirement benefits can be viewed as delayed salaries (McLaughlin, 2004).
Term Life Insurance
This is an insurance policy that entails three aspects as face amount, premium, and length of coverage. A person pays monthly or annual premiums until the policy expires. During this time, the insured is covered against death such that in case he dies, his beneficiaries will be paid the face amount. However, if the insured remains alive even at the expiry of the policy, no benefit is paid to either him or his beneficiaries.
Term life insurance is less expensive and thus affordable to people of low income. Secondly, it is simple to understand even to the illiterate as it involves choosing the policy and length of payment. The monthly premium is generated automatically from these two factors. Lastly, term life insurance has a fixed coverage time and thus suits short term needs. For instance, if one wishes to undertake a policy to cater for his children’s fee, he can calculate the exact policy period by predicting the number of years he will be paying school fees (Financial Consumer Agency of Canada, 2011).
Universal Whole Life Insurance
This is a permanent insurance that, in aIDition to the insurance, accrues savings which are redeemable upon expiry of the policy. A portion of the periodical premiums goes to the insurance kit, whereas the rest is invested and accumulates a cash value. If the insured lives are beyond the policy term, he is paid the cash value. AIDitionally, the cash value can be treated as savings so as to borrow money during the policy term. In case the insured dies before the expiry date, his beneficiaries immediately receive death compensation; upon expiry of the policy they also receive the cash value. The advantage of the Universal whole policy is that it is a two in one benefit. One can receive loans up to a certain percentage of the paid face amount similar to bank savings. Secondly, full benefits are paid to beneficiaries whenever death occurs. Thirdly, one can increase or lower the death benefit over time so as to fit his financial status (Smith, 2005).
Accidental Death and Dismemberment coverage
Most employers offer benefits extending to the provision of cover in case of death of the employee or a member of his nuclear family. This is intended to help employees overcome grieve with no financial strain especially if the deceased had medical bill arrears. Most employers offer the basic conditions of coverage as twice the earnings of the employee in the event of death or total paralysis. Each employee, depending on their job position, is offered with a chart defining the available coverage and the associated cost. This policy helps employees and their kin deal with the unexpected. While the family might have exhausted its resources in hospital bills, this cover helps meet the burial expenses in case the member dies (Essvale Corporation, 2009).
Short and Long Term Disability Insurance
These are insurance policies that protect an employee from loss of income as a result of either short or long term injury or illness. The duration of period eligible for compensation is subject to the terms of the agreement by both employer and employee. Most companies offer a certain percentage of the employee’s income for the stipulated period so as to ensure that he manages to satisfy his basic needs while undergoing treatment. Nonetheless, both long and short term insurance policies do not pay for injuries and accidents incurred in the line of duty or those covered by the employees’ compensation insurance. Both long and short term insurance policies help employees protect their income in instances that they are unable to solve. This is best applied to persons whose income is dictated by the number of days worked for in a month (Essvale Corporation, 2009).
Conclusion
With the increasing competition for labor, organizations have sought for ways of attracting and retaining the most qualified candidates. This is no longer done through offering hefty salaries but also pleasant benefits to the employees. Examples of benefits include health insurance, retirement benefits, paid vacation, tuition reimbursement, employee assistance plans, and policies against employee disability. Employers offer a range of benefits to their employees depending on their position in the organization. Also, the amount of compensation for each employee differs with respect to various factors such as job position and level of risk associated with their duty.

References
Essvale Corporation. (2009). Business knowledge for IT in insurance: A complete handbook for
IT professionals. London: Essvale Corporation.
Financial Consumer Agency of Canada (FCAC), (2011). Understanding insurance basics. Web
Source. http://www.semutual.nb.ca/semwp/wp-content/uploads/2012/09/248483_consumeragencyofcanada.pdf. Retrieved on 14th November 2013.
McLaughlin, C. G. (2004). Health policy and the uninsured. Washington, D.C: Urban Institute
Press.
Pogue, G. (1997). Employee assistance programs on liberal arts campuses. Lanham, Md:
University Press of America.
Smith, M & Hayhoe, (2005). Life Insurance: The Different Types of Policies. Web Source.
http://pubs.ext.vt.edu/354/354-143/354-143_pdf.pdf. Retrieved on 14th November 2013.