Budget-Friendly Benefit Solutions
Have clients who think offering quality employee benefits is too expensive? The good news is it doesn’t have to be. Principal offers a range of options to fit tighter employer budgets.
Disability
When your clients are ready to offer group disability coverage, they can select how employees purchase benefits: by choosing either a percentage of salary or set benefit amounts.
Incremental benefits – an employee-paid, voluntary solution – give employees the power to purchase the amount of coverage they need and can afford in increments, up to 60% of their pre-disability income.
- Short-term disability (STD) amounts can range from as little as $100/week to as much as $1,500/week, in increments of $50.
- Long-term disability (LTD) amounts can range from $500/month to $6,000/month, in increments of $100 or $250.
Increments offer employees flexibility, affordability and control. And since they’re voluntary, they don’t impact your clients’ bottom line. They’re a good first-time disability offering for clients, particularly lower-salary groups. Increments can also be a good mix with traditional benefits. For example, some employers combine incremental short-term disability coverage with employer-paid long-term disability.
Here’s how incremental benefits stack up next to our traditional voluntary or employer-paid disability offering. What you recommend depends on your clients’ needs.
Voluntary short-term disability | Incremental | Traditional |
Max. benefit amount | $1,500/week | $1,500/week up to $2,500 |
Max. benefit percentage | Up to 60% salary | 40% up to 66⅔% of salary |
Voluntary long-term disability | Incremental | Traditional |
Max. benefit amount | $6,000/month | $6,000/month up to $10,000 |
Max. benefit percentage | Up to 60% salary | 40% up to 66⅔% of salary |
Dental
Your clients could save 15-60% over traditional PPO1 benefit designs.2 And employees can choose or change dentists any time, and even see a specialist without a referral.
Some of these affordable options include:
- Preventive-only – Covers preventive care at any dentist.
- Preventive and limited basic – Covers preventive care only, plus select basic procedures, at any dentist.
- In-network only benefits3 – Covers preventive, basic, and major services from dentists in the Principal Plan Dental Network. Services from a non-network dentist aren’t covered.
- High-deductible – Covers preventive, basic, and major services at any dentist. Includes a higher deductible such as $250 on basic and major services.
1 Contracted provider network in Texas. 2 Compared to a traditional benefit design with preventive covered at 100%. After a $50 deductible, basic covered at 80% and major at 50% to a maximum of 1,000. Services from any dentist.3 In-network only plans aren’t available in all states.
Key materials listed below.
Group dental – budget-friendly dental options (GP62146A)
Details about dental benefit designs that cost less than a traditional PPO design. Includes a design with no benefits for services received from a non-network provider. Use in AZ, CO, DE, DC, ID, IN, KS, MI, NJ, NY, OR, SC, SD, TN, UT, and WI only.
Group dental – budget-friendly dental options – no in-network only (GP62146B)
Details about dental benefit designs that cost less than a traditional PPO benefit design. Use in all other states.
Group Disability - Incremental Benefits (GP61819)
Explains incremental benefits, lists reasons why employers should offer it, and gives examples.
View (PDF)
Contact your local sales representative.
Important Information
For producer use only. This summary is not a complete statement of the rights, benefits and limitations of the coverage described here. For cost and coverage details, contact your Principal® representative.
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