Take the stance that they don’t need benefits because their spouse has benefits where they work and their spouse usually works at a big company that has a fantastic benefits plan.
This is absolutely perfect logic for some SmallBiz owners to not set up a benefits plan. Having said that, there are a few good reasons to set up a SmallBiz benefits plan even if the SmallBiz owner’s spouse has benefits:
- The spouse’s plan may not cover everything!
- In this case, such items as Orthodontics, Vision Care, 80% or 90% Reimbursement levels, or even Paramedical Maximums may have the SmallBiz owner reaching into their pocket. Implementing a SmallBiz benefits plan is a more tax-effective way to pay for those additional expenses. Being a SmallBiz owner myself, I set up a Health Care Spending Account so as to help pay for one of our son’s orthodontics the least couple of years; all 4 of us require prescription eyeglasses/contacts; and her company’s $500 Dental max can be a challenge.
- The spouse’s plan will only cover health and dental!
- If the SmallBiz owner is looking to have some Disability coverage or additional no-medical Life insurance, then implementing a SmallBiz benefits plan could be the answer. Traditional Group Insurance provides Disability coverage as an optional add-on.
- The SmallBiz owner can opt out!
- Sometimes, the SmallBiz owner comes to the conclusion that they want to implement a benefits plan but the cost of the plan they want for their employees is cost-prohibitive. Depending on the number of employees, if the SmallBiz owner opts out because they have coverage elsewhere, the benefits plan cost could be reduced by as much as 50%! Just another reason to implement a SmallBiz benefits plan.
- The Spouse’s employment situation may change!
- The SmallBiz owner may have set up a benefits plan and opted out of the Health and Dental but if their spouse loses their job…and their benefits…it is very easy to seamlessly (no medical required) enroll themselves onto their SmallBiz benefits plan. There are many different questions that a SmallBiz benefits plan provides answers for.
If any of these situations make enough sense to you that you wish to further explore implementing a SmallBiz benefits plan, then connect with a Specialist like Brian Poncelet at planyourfuture.me