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How stop loss insurance protects employees


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How stop loss insurance protects employees

  1. 1. How Stop Loss Insurance Protects Employees?New innovations in health care industry are creating variousnew opportunities not only for treatments, but also for specificinsurance protection plans. Stop loss insurance is a great andaffordable alternative as compared to the traditional insuranceoptions.Nowadays companies have the option of self-insurance.Companies take on the liabilities to insure the medical expensesof their employees as well as their families. There is anotheroption available to insure the medical expense as it occursthrough business cash flow. When a company decides to getself-insurance plan, they are likely to pay a specific intendedamount to the insurance company. Subsequently, the insurance Email: Website:
  2. 2. How Stop Loss Insurance Protects Employees?company that the employer has opted to provide the stop lossinsurance, agrees to pay the employees’ medical bills.There are several special insurance policies designed to protectthe company to pay all the claims that are made by employees ortheir family members. As soon as the company agrees to pay theamount to the insurance company, the insurance company isliable to take care of the subsequent claims against the policyscoverage limit.Some policies also protect the company when an employeeclaims an unanticipated huge amount. Although there is apredetermined coverage limit on the policies that apply, the limitand the policies are set by the employer and the insurancecompany. Stop loss insurance offers great financial security. Email: Website:
  3. 3. How Stop Loss Insurance Protects Employees?What kind of stop loss insurance a company should opt dependsmainly on the degree of risk. If the degree of risk is low andmost of the employees are healthy and young, company can optfor the options like self-insurance-without-stop-loss insurancesecurity plan. If the anticipated claims that the company and theinsurance firm have calculated to pay the premium to theemployees is high, then it is beneficial for the company to optfor group-insurance-plan-with-stop-loss-insurance that coversthe employees as well as their families.Basically it depends on the company’s estimated and expectedinsurance related requirements. They need to recognize andspend in an insurance firm that makes the stop-loss insuranceaccessible along with the specialized products. Email: Website:
  4. 4. How Stop Loss Insurance Protects Employees?There are two types of stop loss insurance available that acompany can opt for:Specific Stop Loss:-Specific stop loss provides tragic protection to the self-paidplan. This type of stop loss occurs when the claims reach to theguidelines selected by the company or the employer. Stop losspolicy pays the claims to the lifetime limit on per-employeebasis for the self-insurance plan.Aggregate Stop Loss:-Aggregate stop loss is an insurance policy that offers coverageon all expenses, when another insurance policy is above theprojected cost. An aggregate stop loss insurance policydecreases the companys risk to provide employee benefits.For more details about How Stop Loss Insurance ProtectsEmployees? Visit here Email: Website: