If your employees have insurance, they’re covered, right? The truth is, however, that they may have a false sense of security as many Americans are not in possession of the right coverage. This is known as being underinsured and can have a devastating impact if they need to claim on their insurance.
What Does it Mean to be Underinsured?
Someone who is underinsured doesn’t have the protection that they need to cover them against circumstances that could impact them. Another way that an individual can be underinsured is if their out-of-pocket expenses are more than 10 percent of their annual income, or if their deductible is over five percent of their annual income. These circumstances can cause your employees to suffer financial hardship if they’re required to make a claim. This is, of course, something that a good employer wants to avoid.
Why Are So Many People Underinsured?
Many people end up underinsured through no fault of their own. This might happen because someone neglects to read the fine print of their contract. It’s worryingly common to just glance over a contract and signing it without really knowing what you’re getting into. It’s because of this that an individual can overlook vital parts of the policy and not realize that it’s too late until they’re left massively out of pocket.
Avoiding Being Underinsured
Underinsurance can have a devastating impact on your employees. Thankfully, it’s easier to avoid than you may think. Here at Benely, we understand that the world of insurance is complex and confusing at the best of times. As such, we work closely with our clients to help ensure that their employees get exactly what they need. Working with us takes the stress out of your group health insurance and our vast network of leading providers helps your employees stay fully protected when they need it the most.