Flexible Benefit Plan
Employee benefit plan that allows the employee to choose among several different benefits offered by the employer. In essence, the employee is provided with the opportunity to make a trade-off by trading one benefit for another that best meets the employee's needs at a particular point in time. Contributions paid into the plan, whether on a contributory or noncontributory basis, can be allocated to satisfy the needs of a particular employee rather than those of the employees as a whole. The result should be a balance between the employee's primary needs and the benefit/cost constraints. Among the personal choices that the employee can make are health care plans (choices in types and amount of coverages), WELLNESS PROGRAM plans, child-care benefits, and LONG-TERM CARE (LTC) PLANS.
Popular Insurance Terms
Group that advises on employee benefit plans as to amount of benefits to be paid, how benefits are to be financed, and how employees are to qualify for benefits (vesting requirements). An ...
Automatic right of an insured to renew a policy until a given date or age except under stated conditions. It is extremely important for the purchaser to review the conditions for renewal in ...
Termination of life. A death certificate is required by a life insurance company for a beneficiary to receive the death payment. ...
Total limit of coverage under all policies applicable to the covered loss for which an insured can be indemnified. For example, if two health insurance policies are in force on the same ...
Measurement of how people feel about prevailing economic conditions, employment outlook, and personal finances. This index is based on statistics gathered from questionnaires mailed by the ...
Structured product designed to meet specific needs of the insured that may involve any of the following funding arrangements: loss portfolio transfers in which the self-insurer transfers ...
Retirement payments to be credited for future years of service with an employer. ...
Sum of insurance provided by a policy at death or maturity. ...
Insurance company that transfers a risk to a reinsurance company. ...
Have a question or comment?
We're here to help.