There are very few people that get excited talking about their insurance. When my wife and I hang out with our friends and family, it’s a topic that simply does not come up. Partly because it’s boring and partly because most of us dislike the idea of giving up a portion of our hard-earned money for something we may never use. In the 34 years we’ve been married, we’ve never filed a claim with our auto insurance, yet we pay thousands each year – just in case. Because that’s what insurance is, it’s a way to transfer the financial risk from you to an insurance company in the event that something expensive happens.
As an employer, churches need to provide basic insurance options for their employees to remain competitive with other employers, but more importantly, because your employees need them. Compare the insurance benefits your church offers to this list.
Medical
On a typical Saturday morning in October of 2022, my wife went for a walk with her friend, something they had done together for over a decade. However, this Saturday was different. Shortly after they began their walk, I received a call from our friend that my wife had fallen and could not get up on her own. I took her to urgent care, where the doctor informed us she had fractured her pelvis in three spots. Wow, we did not see that coming – nor all of the X-rays, CT Scans, follow-up visits, pain medication, and physical therapy that come with a serious injury. Without insurance, the cost would have been tens of thousands of dollars.
According to debt.org, job loss and medical bills are America’s leading causes of bankruptcy. Churches need to provide quality medical coverage for their employees. It will help alleviate the financial stress associated with getting the health care the employee or their family needs.
Dental
Everyone wants a brilliant smile with straight pearly white teeth. Studies show that good oral health can decrease the risk of heart disease, diabetes, and other health conditions. Providing dental insurance is another excellent way to show the staff how much the church cares about them.
Vision
Most estimates show that about 75% of Americans require vision correction. And like dental care, good vision care can provide early detection of diseases like diabetes and glaucoma. Excellent and affordable vision plans are available that ensure that church employees can get the vision care they need.
Life
It’s always hard for families grieving the loss of a loved one. But doing so without a financial plan heaps pain upon pain. Financial Peace University recommends life insurance policies for at least ten times an employee’s annual wages. Adequate life insurance ensures the spouse and children won’t lose their home, can go to college, and cover other large expenses that life presents without the primary financial provider. Funerals can cost up to $15,000. There is no better way to demonstrate love than to provide employees with a minimum of a $10,000 term-life policy.
Disability (Short & Long-Term)
When illness, injury, or even pregnancy happens to a church staff member, providing short and long-term disability insurance covers a portion of their income during this period. Churches that provide this benefit demonstrate care beyond how much work (or ministry) can accomplish; it shows love for the person and their family regardless of whether they can return to their position.
Employer Portion
Creating a structure that defines who gets benefits and the portion the employer (church) pays is as important as determining what benefits the church provides. There are several options to consider when structuring the employer portion of paying for medical insurance. Always verify that it complies with state, federal, and carrier requirements. For the benefits listed above, the employer (church’s) portion for the employee should be at least 50% of the premium costs, with a strong recommendation of covering 100% of the employee cost of medical premiums. Providing the employer portion for family care requires additional considerations due to variables like family size and cost. Consult with a trusted and qualified broker not tied to a specific carrier to understand all available options.
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