Frequently Asked Questions
We know first hand that insurance can be confusing. This is why we've created an easy-to-read library of answers to commonly asked questions.
Broaden Your Insurance Knowledge Below
Working With An Independent Agency
Why should I use an independent insurance agent instead of going directly to a company like State Farm or Allstate?
A captive agent works for one company and can only offer you that company's products. An independent agent like Vantage Point Risk works with dozens of top-rated carriers and shops the market on your behalf every time. That means you get the best available option for your situation, not just the best option from one company.
What does it actually mean that you are independent?
It means we have no loyalty to any single insurance company. Our only obligation is to find the right coverage at the right price for you. We can place your policy with whichever carrier fits your needs best, and we can move it if something better becomes available at renewal.
How do you get paid?
We earn a commission from the insurance carrier when we place your policy. You do not pay us directly. Our compensation does not change based on which carrier we choose, which means our incentive is always to find you the best fit.
What is the difference between a broker and a captive agent?
A captive agent represents one company. A broker or independent agent represents you and has access to multiple carriers. At Vantage Point Risk we function as your advisor and compare options across the market rather than selling you what one company offers.
How many insurance companies do you work with?
We work with dozens of top-rated carriers across personal, commercial, trucking, life, and Medicare lines. The number matters less than the quality. We are appointed with carriers that are financially strong, competitively priced, and known for paying claims. Having access to multiple markets means we can find a fit for a wide range of situations, including those that standard carriers decline.
Will you help me when I have a claim?
Yes. Claims advocacy is one of the most important things we do. When you have a claim we help you understand your coverage, communicate with the carrier, and make sure the process moves forward correctly. You do not have to navigate that alone. This is one of the biggest differences between working with an independent advisor and buying a policy online or through a call center.
How often should I review my insurance?
At minimum, once a year at renewal. More often if something significant changes such as buying a home, starting a business, adding a vehicle, hiring employees, or a material change in your income or assets. We proactively review our clients' policies at renewal rather than simply renewing them automatically. Coverage needs change and so do the markets. What was the right fit two years ago may not be the right fit today.
Can you help me if I already have insurance somewhere else?
Yes. We are happy to review your current coverage and compare it against what is available in the market. There is no obligation and no cost to get a second opinion. Many clients come to us after a rate increase at renewal or after a claim experience that left them feeling unsupported. We will give you an honest assessment of where you stand.
Are independent agents more expensive than going directly to an insurance company?
No. The premium you pay is set by the insurance carrier, not by the agent. Our commission comes from the carrier as part of that premium whether you work with us or not. In most cases we are able to find coverage at a lower cost than what you are currently paying because we have access to multiple carriers and can shop the market competitively. You get more options at the same or better price.
What states do you serve?
Vantage Point Risk is licensed across the Western United States with offices in Eugene, Oregon and Whittier, California. We serve clients in Washington, Oregon, California, Idaho, Nevada, Montana, Wyoming, Colorado, Utah, Arizona, New Mexico, North Dakota, South Dakota, Nebraska, Kansas, Oklahoma, Texas, Minnesota, Iowa, Missouri, Arkansas, and Louisiana. If you are not sure whether we are licensed in your state, contact us and we will let you know.
Personal Lines (Auto, Home, Umbrella)
Why did my home insurance rate go up at renewal even though I never filed a claim?
Insurance rates are not based solely on your individual claims history. Carriers adjust rates based on broader factors including local weather events, wildfire risk, construction costs, and overall market conditions in your state. Oregon and California have both seen significant rate increases in recent years driven by these factors. If your rate increased at renewal it is worth having us re-shop your coverage across other carriers.
Do I need an umbrella policy?
If you own a home, have savings or investments, or could be held liable in an accident, an umbrella policy is worth serious consideration. It provides liability coverage above and beyond your home and auto policies, typically starting at one million dollars. The cost is low relative to the protection it provides. Most people who need it do not think they do until something happens.
Does my personal auto insurance cover me if I use my car for work?
Standard personal auto policies typically exclude business use. If you use your vehicle to transport clients, make deliveries, or drive for a ride-share service, you may have a coverage gap. We can review your current policy and recommend the right solution before that gap becomes a problem.
How much home insurance do I actually need?
You need enough to rebuild your home from the ground up at current construction costs, not what you paid for it or what it is worth on the market. These numbers can be very different. Many homeowners are underinsured without knowing it. We review your dwelling coverage as part of every policy review to make sure you are not exposed.
What is the difference between actual cash value and replacement cost coverage?
Actual cash value pays what your property is worth at the time of the loss, accounting for depreciation. Replacement cost pays what it actually costs to replace or repair the item at today's prices. The difference can be significant. A roof that is ten years old has depreciated considerably, and actual cash value may only cover a fraction of what a new roof costs. Replacement cost coverage costs more but closes that gap.
Does my homeowners insurance cover flooding?
Standard homeowners policies do not cover flood damage. Flooding requires a separate flood insurance policy, either through the National Flood Insurance Program or a private carrier. Many homeowners in Oregon and California discover this gap only after a flood event. If you live in or near a flood zone it is worth understanding your exposure.
What happens if I am in an accident and the other driver does not have insurance?
If the other driver is uninsured or does not have enough coverage to pay for your damages, uninsured and underinsured motorist coverage steps in. This coverage is optional in some states but critically important. Medical bills and vehicle repairs can far exceed what a minimum-limits driver can cover. We recommend carrying adequate uninsured motorist limits as part of every auto policy.
Is renters insurance worth it?
Yes. Renters insurance is one of the most affordable and underutilized forms of coverage available. It covers your personal belongings if they are stolen or damaged, provides liability protection if someone is injured in your home, and can cover temporary living expenses if your rental becomes uninhabitable. Most policies cost less than twenty dollars a month. If you rent, you need it.
What does an umbrella policy actually cover?
An umbrella policy provides additional liability coverage above the limits of your home and auto policies. It kicks in when a claim exceeds your underlying policy limits. For example, if you are at fault in a serious auto accident and the damages exceed your auto liability limit, your umbrella covers the difference up to its limit. It also covers some liability situations that home and auto policies exclude, such as certain personal injury claims.
How do I know if I have enough auto insurance?
State minimum requirements are a floor, not a recommendation. Minimum limits are often inadequate to cover the cost of a serious accident, leaving you personally responsible for the difference. A good starting point is enough liability coverage to protect your assets including your home, savings, and future income. We review every client's auto limits in context of their full financial picture and make sure the coverage matches the exposure.
Commercial Lines (BOP, GL, Professional Liability)
What is a BOP and does my small business need one?
A Business Owners Policy bundles general liability and commercial property coverage into one policy, typically at a lower cost than buying them separately. Most small businesses benefit from a BOP. It covers things like customer injuries on your premises, damage to your building or equipment, and basic business interruption. If you own or lease a physical space and interact with customers or clients, a BOP is usually the right starting point.
What is the difference between general liability and professional liability?
General liability covers bodily injury and property damage. If someone gets hurt at your business or you accidentally damage a client's property, general liability responds. Professional liability, also called errors and omissions, covers claims that your advice, service, or work caused a financial loss. Many businesses need both. If you provide a professional service of any kind, general liability alone is not enough.
What does a contractor need in terms of insurance?
At minimum, most contractors need general liability insurance and workers compensation if they have employees. Depending on the work, you may also need commercial auto, tools and equipment coverage, and a contractor's license bond. The specific requirements vary by state and by the type of work you do. We work with contractors across Oregon and California and can build the right program for your operation.
Does my business insurance cover my employees?
General liability covers claims made by third parties, not your employees. For employee injuries on the job, you need workers compensation, which is required by law in most states. We can review your full exposure and make sure you are covered correctly across both liability and employee protection.
What is commercial umbrella insurance and does my business need it?
A commercial umbrella policy provides liability coverage above and beyond your underlying business policies including general liability, commercial auto, and employers liability. If a claim exceeds your primary policy limits, the umbrella covers the difference up to its limit. Any business with significant assets, public exposure, or contractual requirements to carry higher limits should consider a commercial umbrella.
What does business interruption insurance cover?
Business interruption coverage pays for lost income and ongoing expenses if your business is forced to shut down temporarily due to a covered loss such as a fire, a burst pipe, or other physical damage to your property. It covers things like payroll, rent, and operating costs while you get back on your feet. It does not typically cover shutdowns caused by disease or government orders, which is a gap many business owners discovered during the pandemic.
Do I need cyber liability insurance for my small business?
If your business stores customer data, processes payments, or relies on computer systems to operate, cyber liability insurance is worth serious consideration. A data breach or ransomware attack can cost tens of thousands of dollars in recovery costs, legal fees, and notification requirements. Small businesses are frequently targeted because they tend to have weaker security than large companies. Coverage is more affordable than most business owners expect.
What is EPLI and who needs it?
Employment Practices Liability Insurance covers claims made by employees alleging wrongful termination, discrimination, harassment, or other employment-related issues. Any business with employees is exposed to these claims, and even a baseless lawsuit can cost significant money to defend. EPLI is particularly important for businesses that are growing, have high turnover, or operate in industries with frequent employee disputes.
My client is requiring me to show proof of insurance before we can start work. What do I need?
Most clients and general contractors require a Certificate of Insurance showing your general liability coverage and, where applicable, workers compensation. They may also require being named as an additional insured on your policy. We handle certificate requests and additional insured endorsements as part of our service. If you have a specific requirement from a client, send it to us and we will make sure your policy meets it.
How much general liability coverage does my small business actually need?
The right amount depends on your industry, the size of your contracts, and your exposure to third-party claims. A one million dollar per occurrence limit is common for many small businesses, but some industries and clients require higher limits. If you have significant assets or sign contracts that specify minimum coverage requirements, you may need more. We review your specific situation and recommend limits that match your actual exposure rather than just the minimum.
Trucking Insurance
What insurance does a trucking company need?
At minimum, commercial trucking operations need primary liability coverage, which is required by the FMCSA. Depending on your operation you may also need physical damage coverage for your truck, cargo insurance, bobtail coverage, and general liability. The right program depends on whether you are an owner-operator, lease to a carrier, or run your own authority. We built Truck Policy Insurance Agency specifically for this market and understand the requirements inside and out.
What is the difference between trucking insurance and commercial auto insurance?
Commercial auto covers standard business vehicles. Trucking insurance is specifically designed for the unique risks of long-haul and local trucking operations. The liability limits required, the cargo exposure, and the federal and state regulatory requirements are all different. A standard commercial auto policy is typically not adequate for a trucking operation and could leave you without coverage when you need it most.
What does cargo insurance cover?
Cargo insurance covers the freight you are hauling if it is damaged, lost, or stolen in transit. Whether you need it and what limits you need depends on what you haul and who you haul it for. Many shippers and brokers require proof of cargo coverage before they will assign a load. The right cargo limit is based on the value of the freight you typically carry.
I am an owner-operator leased to a carrier. Do I need my own insurance?
Yes, in most cases. The carrier's policy covers liability while you are under dispatch, but it typically does not cover your truck when you are not on a load, your personal use of the vehicle, or your own physical damage. Bobtail and non-trucking liability coverage fills those gaps. We review the specifics of your lease agreement and make sure there are no uncovered periods in your program.
What is bobtail insurance and when do I need it?
Bobtail insurance covers your truck when you are driving without a trailer and not under dispatch. For example, driving home after dropping a load or heading to pick up a new one. The primary carrier's liability policy typically only applies when you are under their dispatch. Without bobtail coverage there is a window where you are exposed. Most owner-operators leased to a carrier need it.
What FMCSA insurance requirements apply to my trucking operation?
The Federal Motor Carrier Safety Administration requires minimum liability coverage based on the type of freight you haul and whether you operate interstate. For most general freight operations the minimum is $750,000, but hazmat and passenger carriers face higher requirements. These are federal minimums and many shippers and brokers require higher limits as a condition of doing business. We make sure your program meets both regulatory requirements and the practical demands of your freight lanes.
How does a trucking insurance claim work?
When an accident or loss occurs, you report it to your carrier and we help manage the process from there. We assist with documentation, communicate with the adjuster, and advocate on your behalf to make sure the claim is handled correctly and efficiently. Trucking claims can be complex, involving multiple parties, cargo damage, and regulatory considerations. Having an advisor who understands the trucking business makes a significant difference in how a claim resolves.
Why is trucking insurance so expensive and what can I do about it?
Trucking insurance costs reflect the real risk involved. Large vehicles, high-value cargo, and significant liability exposure drive rates up. Rates are also heavily influenced by your safety record, CSA scores, years in business, and loss history. The best way to manage cost is to maintain a clean record, invest in safety, and work with an agent who has access to multiple trucking-specific carriers rather than placing your policy with a generalist. We shop the trucking market specifically and know which carriers are competitive for your profile.
What is a motor carrier filing and do I need one?
A motor carrier filing, also called an MCS-90 endorsement, is a federal requirement for carriers operating under their own authority. It certifies that your insurance meets FMCSA minimum requirements and is filed directly with the FMCSA. If you have your own operating authority you need this filing. We handle MCS-90 filings as part of the trucking program setup and make sure your authority stays in good standing.
Can you insure a small trucking fleet or just single owner-operators?
We insure both. Whether you are a single owner-operator or running a fleet of ten trucks, we can build a program that fits your operation. Fleet programs can offer better pricing and simplified administration compared to insuring each unit separately. We work with carriers that specialize in small to mid-size trucking fleets and understand the specific coverage needs of operations hauling construction materials, agricultural products, general freight, and more.
Life Insurance
What is the difference between term and whole life insurance?
Term life provides coverage for a set period, typically 10, 20, or 30 years, and pays a death benefit if you pass away during that term. Whole life provides permanent coverage and builds cash value over time. Term is generally less expensive and is the right fit for most people who need income replacement coverage. Whole life makes sense in specific estate planning or permanent coverage situations.
When is the best time to buy life insurance?
The best time is when you are young and healthy. Premiums are based on age and health at the time you apply. Waiting means higher rates or the possibility of being declined if your health changes. If you have dependents, a mortgage, or anyone who relies on your income, you likely need coverage now.
How much life insurance do I actually need?
A common starting point is ten times your annual income, but the right amount depends on your specific situation including your debts, income replacement needs, number of dependents, and any existing coverage. The goal is to make sure the people who depend on you are financially protected if you are no longer there. We walk through the numbers with every client to find the right coverage level rather than defaulting to a rule of thumb.
What is universal life insurance and how is it different from whole life?
Both are permanent life insurance policies that build cash value, but they work differently. Whole life has fixed premiums and a guaranteed cash value growth rate. Universal life offers more flexibility and you can adjust your premium payments and death benefit within certain limits. The tradeoff is that universal life is more complex and the cash value growth is tied to interest rates or market performance depending on the type.
Can I get life insurance if I have a pre-existing health condition?
In many cases yes, though your options and rates will depend on the condition and its severity. Some carriers are more competitive than others for specific health histories. There are also simplified issue and guaranteed issue policies that do not require a medical exam, though they typically come with lower coverage limits and higher premiums. We work with multiple carriers and know which ones are most competitive for different health profiles.
What is the difference between life insurance and accidental death coverage?
Life insurance pays a death benefit regardless of how you die, subject to policy terms. Accidental death coverage only pays if your death is the result of an accident and does not cover death from illness or natural causes. Accidental death coverage is inexpensive but very limited. Most people need true life insurance, not just accidental death coverage.
Does life insurance cover suicide?
Most life insurance policies include a suicide exclusion for the first two years the policy is in force. After that period, death by suicide is generally covered under the same terms as any other death. If you are evaluating an existing policy, the two-year window typically starts from the original issue date.
Can I use life insurance as part of my retirement or financial planning?
Permanent life insurance policies that build cash value including whole life, universal life, and indexed universal life can be used as part of a broader financial strategy. The cash value grows tax-deferred and can be accessed through loans or withdrawals. This is not the right strategy for everyone and the costs are higher than term insurance. We discuss both the insurance and financial implications with clients who are considering this approach.
What happens to my life insurance if I change jobs?
If you have employer-provided group life insurance, it typically does not follow you when you leave. Most group plans offer a conversion option that allows you to convert your group coverage to an individual policy within a set timeframe, usually without a new medical exam. If you have an individual policy you own outright, job changes have no impact on your coverage.
How do I choose between multiple life insurance quotes?
Price matters but it is not the only factor. The financial strength rating of the carrier, the specific policy terms and exclusions, the conversion options if it is a term policy, and the long-term serviceability of the policy all matter. We present our clients with the top options across multiple carriers and explain the differences clearly so you can make an informed decision rather than just picking the lowest number.
Medicare Insurance
What is the difference between Medicare Advantage and Original Medicare?
Original Medicare is the federal program that covers hospital care and medical services through Part A and Part B. Medicare Advantage is an alternative offered by private insurance companies that must cover at least what Original Medicare covers and often includes additional benefits like dental, vision, and prescription drugs. The right choice depends on your health needs, your doctors, and where you live. We help clients compare both options and understand the real-world differences before they enroll.
When can I enroll in Medicare?
Your initial enrollment window is the seven-month period that begins three months before your 65th birthday month. Missing this window can result in late enrollment penalties that follow you for life. There are also Special Enrollment Periods for people who have employer coverage when they turn 65. We walk clients through the timeline well in advance so they do not miss their window.
What does Medicare Part A cover?
Part A covers inpatient hospital care, skilled nursing facility care following a hospital stay, hospice care, and some home health services. Most people do not pay a premium for Part A if they or their spouse paid Medicare taxes for at least ten years. Part A does have deductibles and coinsurance costs that apply depending on the length of your hospital stay.
What does Medicare Part B cover?
Part B covers outpatient medical services including doctor visits, preventive care, lab tests, durable medical equipment, and many other services not covered by Part A. Part B requires a monthly premium which is based on your income. Most people pay the standard premium, but higher-income beneficiaries pay more through what is called IRMAA.
What is Medicare Part D and do I need it?
Part D is prescription drug coverage offered through private insurance companies approved by Medicare. If you take prescription medications, you almost certainly need Part D. There is also a late enrollment penalty if you go without creditable drug coverage for 63 or more days after you first become eligible. Even if you currently take no medications, enrolling when you are first eligible protects you from the penalty down the road.
What is a Medicare Supplement plan and how does it work?
A Medicare Supplement plan, also called Medigap, is a private insurance policy that covers some or all of the out-of-pocket costs that Original Medicare does not pay including deductibles, coinsurance, and copayments. It works alongside Original Medicare rather than replacing it. Medigap plans are standardized, meaning Plan G from one carrier covers the same things as Plan G from another carrier, though premiums vary. They do not typically include prescription drug coverage, so most people pair a Medigap plan with a Part D plan.
What is the difference between a Medicare Supplement plan and a Medicare Advantage plan?
They are two different ways to receive your Medicare benefits. A Medicare Supplement plan works alongside Original Medicare and helps cover your out-of-pocket costs. A Medicare Advantage plan replaces Original Medicare entirely and is administered by a private insurer. Advantage plans often include extras like dental and vision but typically use networks and require referrals in some cases. Supplement plans offer more flexibility in choosing providers but usually cost more in monthly premiums.
Can I be denied a Medicare Supplement plan?
Outside of your initial open enrollment period, Medicare Supplement insurers in most states can use medical underwriting to deny coverage or charge higher premiums based on your health history. This is why enrolling during your initial open enrollment period is so important. That is the six-month window that starts when you enroll in Part B at age 65. During that window, insurers cannot deny you or charge more based on pre-existing conditions.
What happens to my Medicare if I move to another state?
Original Medicare and most Medicare Supplement plans work nationwide, so moving states generally does not affect your coverage. Medicare Advantage plans are local and operate within specific service areas. If you move out of your plan's service area you will need to switch to a new plan. We help clients navigate this transition and find the right plan in their new location.
When should I start thinking about Medicare planning?
Ideally, at least six months before you turn 65. Medicare decisions including which path to take, which plans to enroll in, and how your current coverage interacts with Medicare can have long-term financial consequences if made incorrectly. Starting early gives you time to understand your options and make the right choice without feeling rushed. We work with clients well before their 65th birthday to make sure they are prepared.
Group Health Insurance
What is group health insurance and how is it different from individual health insurance?
Group health insurance is coverage offered by an employer to its employees as part of a benefits package. Because the risk is spread across a group, premiums are typically lower than what an individual would pay on the open market. The employer usually pays a portion of the premium and employees pay the remainder through payroll deduction. Individual health insurance is purchased on your own and is generally more expensive for comparable coverage.
Am I required to offer health insurance to my employees?
Under the Affordable Care Act, employers with 50 or more full-time equivalent employees are required to offer health insurance or face potential penalties. Employers with fewer than 50 employees are not required to offer coverage, but many do to attract and retain good employees. If you are unsure where your business falls, we can help you assess your obligations and your options.
How much does group health insurance cost a small business?
The cost depends on the size of your group, the ages of your employees, the state you are in, and the plan design you choose. Employers typically pay between 50 and 80 percent of the employee premium, with employees covering the rest. Adding dependents increases the cost. We shop multiple carriers for your group and present options at different coverage and contribution levels so you can make the decision that fits your budget.
What types of group health plans are available?
The most common types are HMOs, PPOs, and HDHPs with Health Savings Accounts. An HMO requires employees to use a network of providers and typically requires referrals to see specialists. A PPO offers more flexibility to see any provider but usually costs more. An HDHP has a higher deductible and lower premium and is often paired with an HSA that allows employees to save pre-tax dollars for medical expenses. The right plan type depends on the needs and preferences of your workforce.
Can I offer health insurance if I only have a few employees?
Yes. Most carriers will write group health insurance for employers with two or more eligible employees. Some states allow groups of one. Small group plans are available through major carriers and the small business health options marketplace. We work with small employers across Oregon and California and can find coverage options for groups of nearly any size.
What is an HSA and can I offer one with my group health plan?
A Health Savings Account is a tax-advantaged account that employees can use to pay for qualified medical expenses. To be eligible for an HSA, an employee must be enrolled in a High Deductible Health Plan. Both employers and employees can contribute to the HSA. Contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are also tax-free. Pairing an HDHP with an HSA is a popular strategy for small employers looking to offer meaningful benefits while managing premium costs.
What is the difference between fully insured and self-funded group health plans?
A fully insured plan means the employer pays a fixed premium to an insurance carrier who assumes the financial risk of claims. A self-funded plan means the employer pays claims directly as they occur and typically purchases stop-loss insurance to limit exposure on large claims. Self-funding can save money for healthy groups but carries more financial risk. Most small employers use fully insured plans. Self-funding becomes more common and potentially advantageous for groups of 50 or more.
Can employees keep their health insurance when they leave the company?
Under COBRA, employees who leave a job can continue their group health coverage for up to 18 months by paying the full premium themselves including the portion the employer previously covered. COBRA coverage is typically expensive because the employee is paying the entire cost. It is an important bridge option for employees between jobs or waiting for new coverage to begin.
What is open enrollment and how does it work for group health plans?
Open enrollment is the annual period when employees can enroll in or make changes to their health insurance coverage. For group plans, the employer sets the open enrollment period, typically 30 days before the plan renewal date. Outside of open enrollment, employees can only make changes if they experience a qualifying life event such as marriage, the birth of a child, or loss of other coverage. We help employers manage the open enrollment process and make sure employees understand their options.
How do I know which group health plan is the right fit for my employees?
The right plan balances cost, coverage quality, network breadth, and the specific needs of your workforce. A younger workforce may prefer lower-premium HDHPs with HSAs. An older workforce or employees with ongoing medical needs may prioritize lower deductibles and broader networks. We survey employee needs, present multiple plan options with clear comparisons, and help you choose a contribution strategy that works for both your budget and your team.
Group Benefits Insurance
What are group benefits and what is typically included?
Group benefits are employer-sponsored programs that go beyond health insurance to support the overall wellbeing of employees. Common group benefits include dental and vision insurance, life insurance, short and long-term disability, accident insurance, and critical illness coverage. Some employers also offer voluntary benefits that employees can elect and pay for themselves at group rates. A well-rounded benefits package helps attract and retain employees and signals that the employer values their team.
Do I have to offer benefits beyond health insurance?
No. With the exception of workers compensation and, for larger employers, health insurance, most employee benefits are voluntary. That said, benefits are one of the primary factors employees consider when evaluating a job offer. Small businesses that offer a meaningful benefits package compete more effectively for talent against larger companies. We help small employers build benefit programs that fit their budget while making a real difference to employees.
What is group dental insurance and is it worth offering?
Group dental insurance covers preventive care like cleanings and x-rays, basic restorative work like fillings, and major procedures like crowns and extractions. Most plans use a tiered structure where preventive care is covered at a higher percentage than major work. Dental is one of the most requested benefits by employees and is relatively affordable to add to a benefits package. Employers who offer dental see higher employee satisfaction and utilization of preventive care that reduces long-term health costs.
What is group disability insurance and why does it matter?
Disability insurance replaces a portion of an employee's income if they are unable to work due to illness or injury. Short-term disability typically covers the first few months of a disability, while long-term disability kicks in after that and can last for years or until retirement. Most people significantly underestimate their likelihood of experiencing a disability during their working years. Offering disability coverage is one of the most meaningful protections an employer can provide.
What is the difference between short-term and long-term disability insurance?
Short-term disability covers a portion of an employee's salary for a limited period, typically 90 to 180 days, following an illness, injury, or qualifying event such as childbirth. Long-term disability takes over after the short-term benefit period ends and can provide income replacement for years or until the employee reaches retirement age. Many employers offer both, and the two policies work together to provide continuous income protection. Having both eliminates the gap between when short-term ends and when long-term begins.
What is voluntary life insurance and how does it work in a group benefits package?
Voluntary life insurance is additional life insurance that employees can purchase on top of any employer-provided basic life coverage. It is offered at group rates, which are typically lower than what an employee would pay individually. Employees can often elect coverage without a medical exam up to certain limits during open enrollment. It is a low-cost benefit for the employer to offer and a meaningful option for employees who need more coverage than the basic employer-provided amount.
What is a section 125 cafeteria plan and should my business have one?
A Section 125 cafeteria plan, also called a flexible benefits plan, allows employees to pay for certain benefits with pre-tax dollars, reducing their taxable income. Employers also save on payroll taxes for the amounts employees contribute pre-tax. Common benefits offered through a Section 125 plan include health insurance premiums, dental, vision, and flexible spending accounts. For most employers offering any group benefits, setting up a Section 125 plan is a straightforward way to provide a tax advantage to both the business and employees.
What is a Flexible Spending Account and how is it different from an HSA?
A Flexible Spending Account is an employer-sponsored benefit that allows employees to set aside pre-tax dollars for qualified medical or dependent care expenses. Unlike an HSA, an FSA does not require enrollment in a high-deductible health plan and can be offered alongside any health plan. FSA funds typically must be used within the plan year, though some plans offer a grace period or limited rollover. An HSA has no use-it-or-lose-it requirement and the funds roll over indefinitely. The two accounts serve similar purposes but have different rules and eligibility requirements.
How do I communicate benefits to my employees so they actually understand and use them?
Benefits communication is one of the most overlooked parts of running a group benefits program. Many employees do not fully understand what they have or how to use it, which reduces the value of the investment the employer has made. We help employers put together clear, plain-language benefit summaries for open enrollment, and we are available to answer employee questions directly. When employees understand their benefits, they use them and that translates into better retention and satisfaction.
How do I get started setting up a group benefits program for my business?
The first step is a conversation about your goals, your budget, your employee demographics, and what you are currently offering if anything. From there we assess the market, present options, and help you build a program that makes sense for your business. There is no minimum size requirement to get started and we work with employers of all sizes. The sooner you put a program in place, the sooner it becomes a tool for attracting and keeping good people.