Learn More: Insurance Plans

Medical

A medical or healthcare plan insures employees against high or unexpected healthcare expenses. The health insurance provider estimates the overall "risk" of healthcare expenses and develops an average cost (such as a monthly or per-paycheck premium) that will ensure that money is available to pay for the healthcare benefits specified in the insurance agreement. The healthcare benefit is administered by a central organization.

For more information, consult IRS publication 502.

Dental

Discount dental plans offer your employees and (optionally) their family members a way to save money on their dental care needs.

You would work with a healthcare provider to design or select a dental benefits plan.

For more information, consult IRS publication 502.

Vision

A vision plan is a form of insurance that helps employees pay for services from eye care professionals such as ophthalmologists and optometrists. A typical vision insurance plan provides yearly coverage for eye examinations and partial or full coverage for eyeglasses and contact lenses, depending on the plan. You should start with your health-care provider and see if they offer a vision plan.

Long-term Disability

Long-term disability insurance provides partial or full wage-replacement for employees who become disabled. LTD coverage lasts for at least one year. There is usually a wait period before employees become eligible for this type of coverage.

One of the big decisions you'll need to make is how to cover pre-existing conditions. Some plans have a wait period before coverage for such conditions becomes available, in addition to the service wait period.

Short-term disability

Short-term disability replaces some portion of an employee's income if an injury or illness prevents them from working, for a specified period of time. Some employers include group STD policies as part of their benefits packages.