About 77 % of employees are in a traditional benefits plan. Flexible and modular-flex group benefit plans are an alternative to think. They provide a predetermined amount of coverage for various services to all employees. Still, they cannot change the nature or extent of coverage. Surveys recently found that 64% of workers prefer a flexible benefits plan.
These are the primary distinctions between modular-flex and flex plans for group benefits, with pros and cons of both:
Flexible Plans
A fully flexible plan lets plan participants choose the most beneficial benefits for their specific needs. They may choose to buy more options or keep the coverage provided by their employer. In a flex, employees get given credits that they can use to purchase coverage options they choose. For instance, one person might prefer to spend most of their credits on prescription drugs. In contrast, others like spending all their praise on physical therapy or massages.
The decision is entirely up to the employee and gives them greater control over their protection.
Pros & Cons
This kind of plan gives employees the best choices and flexibility. It is an excellent choice for companies of any size and guarantees that employees take advantage of all benefits. Due to the multiple alternatives offered, this is also one of the most complicated to administrate. The administration could delegate to a third party. However, this may result in a cost increase.
Modular-Flex Plan
A modular-flex plan offers more flexibility than traditional plans but is also more organized than a conventional flexible plan. Employees can choose from various benefit levels with varying sorts of coverage. These alternatives cater to many groups, including singles, families, and the elderly. Traditional health benefits are available for each tier. A single person might want more excellent coverage for paramedical issues than someone with a family who is more concerned about their children’s dental health.
Pros & Cons
Modular-flex plans may be more challenging to manage than traditional plans. However, they are less complicated than the right flexible plan. This kind of plan is an excellent alternative for employers who want to provide the essential coverage that gets expected and the ability to pick additional benefits beneficial to the employee.
Flexible and modular-flex benefits are an excellent alternative for employers who want to diversify their compensation programs and offer more significant employee benefits. Non-traditional benefits like cooking, daycare or even language classes can appeal enormously to younger generations. The flexibility to customize your benefits plan is essential to draw young and new talent.
Contact Ottawa Life Insurance at (613) 454-1424 or info@ottawa-lifeinsurance.ca if you want to examine your current benefits plan or have more questions regarding flex and modular-flex group benefit plans.
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