6 types of financial benefits you can receive at your workplace

The pay is not the only thing you must consider when evaluating a job offer. All across America, employers are offering many perks to attract and retain talent. Financial benefits are one type of perk. Financial benefits that come with your job will help create a safety net for you in case of a financial emergency such as a major surgery, disability, or retirement.

1. Health Insurance

One of the most common types of financial benefits offered by employers, health insurance, is a favorite among American employees. Your employer’s health insurance plan for you will one day help you offset the cost of medical care. Many people use health insurance to afford doctor’s visits, hospital stays, and prescription medication. You may have to pay a certain portion of the premium, deductibles, or co-payments depending on the type of insurance plan your employer has chosen.

2. Retirement Savings Plans

This is another type of common financial benefit offered by employers in the US. There are multiple types of retirement savings plans as 401(k)s, Roth 401(k)s, and Individual Retirement Accounts (IRAs), which we have discussed previously. A retirement plan will allow you to save up a portion of your pre-tax income and let it grow tax-free until you retire. Most employers match your contribution to the fund, helping you have more capital for your retirement savings plans).

3. Life Insurance

Life insurance is almost a necessity when you are a working parent. A life insurance will help secure the financial health of your family in the case of your death. A lot of workplaces offer life insurance along with the initial job offer. Depending on the type of plan your employer and you select, there will be differences in the premiums and coverage.

4. Disability Insurance

Have you heard of a colleague who got disabled while working and got an income replacement? They most certainly had a disability insurance plan going. If an employee gets injured or ill and becomes unable to work, disability insurance provides an income replacement for them. There are several different types of disability insurance policies, including short-term disability and long-term disability. A person can get short-term disability coverage for a few months or long-term disability coverage for a few years.

5. Flexible Spending Accounts

Flexible spending accounts (FSAs) are a way of using your pre-tax income to pay for healthcare and dependent care. It will reduce the taxable income of an employee. Many employees prefer this type of financial benefit because it allows them to save up on many expenses. You can select between two types of FSAs as healthcare FSAs and dependent care FSAs.

6. Paid Time Off

PTO or Paid time off is one of the best kinds of financial benefits you can receive at a workplace. Your employer can choose to include vacation days, sick days, and even personal leaves into PTO. Some companies let you collect PTO over time while other employers just provide it at the start of the work year. There are even employers who provide unlimited PTO for their employees. Depending on your employer, the number of your PTO days will vary. Some employees prefer to save up on their PTO all year and take a long annual vacation.