Potential Voluntary Benefits

In-Hospital Payment Plan

This program pays a daily benefit – usually between $50 and $300 – during periods of hospital confinement.  Benefits are paid directly to the patient, regardless of how much expense the person actually incurred.  Some plans pay double for intensive care confinement.  Also, some plans include additional payments for specific hospital-related expenses.

Specific Illness Indemnity Plans

These plans usually make a lump-sum payment upon diagnosis of the specified illness.  Coverage is available in amounts ranging from $5,000 to $100,000.  The most common specified diseases include:

• Cancer
• Heart attack or stroke
• Renal failure
• Major organ transplant

Some policies cover each of the above separately, while others cover all of the above under a single policy. 

Long-Term Care (LTC)

Stand-alone LTC plans usually contain the following features:

• A set monthly benefit is paid, regardless of the actual cost of care
• Waiting period may vary from 30 days to 180 days
• Benefit periods can be for two, three, or five years or for life
• Reduced benefits can be provided for home care performed by a family member

(Note:  An accelerated LTC benefit is currently available under the Universal Life plan.)

Preferred Mortgage Programs

This benefit gives employees and retirees a program with a respected mortgage lender that offers to waive certain closing costs as well as offer a slight reduction in interest rates from those available to the general public.

Accident Coverage

Traditional accident policies come in two basic forms:  24-hour, all-risk coverage or common carrier.  All-risk coverage covers accidents regardless of the cause (other than self-inflicted or crime-related).  Common carrier only covers accidents while traveling on a public conveyance (i.e., plane, train, bus, taxi, etc.)

Section 529 College Savings Plan

This program allows a grantor (usually a parent or grandparent) to establish a tax-exempt savings plan for a child or grandchild’s college education.  Each state has its own approved 529 plan, which is typically managed by an authorized mutual fund company.  Administration fees and investment options also vary from state to state.

The plan does not require that the child be specifically identified when the plan is established.  This allows the employee to use the plan assets for any child attending college.  As long as the proceeds are used for college expenses, they are not taxable.

Discount Buying Service

This type of program would be a resource for employees and retirees.  For those who purchase items and pay for them through payroll deduction, there is usually a favorable finance rate.  The types of items offered by such a service are usually limited to computers, electronics, appliances, cameras, and automobiles.

This type of plan works best for those who cannot afford to pay cash for the above types of items.

Pet Insurance

There are a number of companies which offer pet insurance.  Most of the pet insurance plans available are discount plans.  Veterinary Pet Insurance is the oldest and most experienced pet insurance company in the business.  Their plan is an indemnity plan that covers all routine medical problems and injuries.  There is a set deductible and pets may be taken to any vet, because there is not a network.  The company offers a standard plan and a superior plan, as well as an exotic pet plan.  More information is available on the company's Web site.

Just as with medical plans for humans, there are exclusions for pre-existing conditions.  Older pets require a medical history prior to approval.