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Financial Planning
Employee Benefit Plans

Walking path in the Bird Sanctuary
Walking path in the Bird Sanctuary behind our home

Many employers offer employee benefit plans which include life insurance and health and/or dental benefits, and may include short and/or long term disability insurance and critical illness insurance. The employer usually pays between 50% and 100% of the cost of the plan.

I usually recommend that the employer pay 100% of any health and dental premiums as this is most tax effective. I also recommend that the employees pay for the life, disability and critical illness portion of the plan so that they will not pay taxes if they make a claim.

It should be noted that the health costs in an employee benefit plan are increasing at about 15% to 17% annually due increased costs of drugs, downloading of government plans, and the aging work force. The dental costs are increasing at about 6% annually. This means that many employers are cutting benefits to save money.
Gill, Chris and Kayla