Traditional Benefits
When a business is started, it needs to offer employees some basic products. These typically include:

• Medical Insurance—Often considered by most employees as their most valuable group benefit. Provides coverage that may include prescription drugs.
• Group Disability Insurance—Protection for employees against financial risk associated with lost income due to a short-term or long-term disability.
• Group Life Insurance—Protection on the lives of their employees that provides a benefit to the employee's designated beneficiaries.

Basic benefits are essential to help attract and retain valuable employees.

Non-Traditional Benefits
During the evolution and growth of a business, the benefit needs will change and become more sophisticated.

Some examples include:

• Cafeteria Plans—Flexible benefit plans that allow employees to choose their benefits within certain prescribed limits. Among the choices that might be available in a typical plan are:
  • Medical plan options that offer a choice between a traditional indemnity plan and an HMO.
  • Group term life insurance for the employee and their dependents.
  • Optional 401(k) retirement plan contributions.
  • Spending accounts for unreimbursed medical expenses (e.g. deductibles and co-payment amounts) and dependent care (e.g., day care) expenses.
• COBRA Services—Assistance to ensure businesses are in compliance with the health care continuation provisions of Consolidated Omnibus Budget Reconciliation Act (COBRA).
• Employee Assistance plans—Comprehensive employee assistance programs and work life services.