FAQ'S: BENEFITS

Can I buy group insurance if it’s just myself and my spouse? In some states, the two individuals qualify as a small group where one person elects the coverage and the other opts out. It’s worth contacting your broker to ask that question.

What types of policies can be purchased on a group basis? Medical Plans, Dental Plans, Vision Plans, Short Term Disability, Long Term Disability, Life Insurance, Travel Accident, Long Term Care, Voluntary plans (providing specified disease coverage and cancer coverage.)

When an employee receives the benefits from these plans, is the income tax free? When an employee pays for their own insurance, the benefit is paid to them tax free. In order to provide the benefit to your employees and keep the benefit received as tax free income, the employer should increase their salary by the cost of their benefit and allow them to pay the premium before tax under a Cafeteria 125 Plan.