What are the Different Types of Employee Benefit Plans?

Do you know what the different types of employee benefits are? As an employee it is essential that you understand the different types so you can be sure that you are receiving the benefits that you should be.

First you need to understand what benefits are. They are basically the perks that you are offered in addition to your salary when you hire into a company. Now, here are the different types of important benefits that are the most common for you to be aware of.

1. Medical insurance - This will cover the cost of the physician or surgeon fees, hospital rooms, and prescription medications. Sometimes, dental and optical are also covered. There are times that your family can also be included on this insurance.

2. Life insurance - This is essential for protecting your family in case you should die. The benefits will be paid to your family all at once to the designated beneficiaries of the policy.

3. Disability insurance - This will protect your family from financial ruin if you are injured in an accident or have an illness. This benefit is not always offered by employers.

There are two main types of this insurance: Short term, which covers you for a few weeks or a shorter period of time, and long term that will provide benefits for the long term.

4. Retirement benefits - It is important to make sure that retirement benefits are available to you because everyone needs to put money aside for when you do get to retirement age.

5. Paid time off - Everyone needs paid time off at some point. Most times you have to earn time off if you want vacation time. Other types of paid time off include holidays and sick leave.

6. Fringe benefits - These are non-cash payments that are used in different companies and may not always be added to the benefit plan. You will need to check the plan to be sure or ask about them.

Some fringe benefits can include:

- Tuition assistance
- Flexible medical
- Child care spending accounts
- Other child-care benefits

Now that you know what the different types of employee benefit plans are you can as the right questions of a potential employer. Always be sure that you clearly understand what benefits a company offers as this factors strongly into making the decision of who to work for and is a big part of the overall package which includes wages.

To locate lost plan participants or missing employees go to www.employeelocator.com

Cathy Taylor is a marketing consultant and freelance writer. She can be reached at creativecommunications@cox.net