Coverage types

When you set up your benefit plan, you identify the types of coverage that you want to offer your employees. This table describes the types of coverage that you can use to set up your plan.

Coverage Type Description Example
No Coverage No coverage is offered under the benefit plan. Use No Coverage for benefit plans such as defined contribution and spending accounts that have employee contributions but no coverage.

The Organization's 401(k) plan is based on employee contributions.

To define this plan, the Organization selects No Coverage in the Coverage Type field.
Coverage Options

Define the specific options that an employee can select during enrollment. For example, a health plan might offer options such as single, individual + 1, and family.

Note: 

When this is the coverage type, a coverage option table is required. These are defined in set up.

The Organization has a health plan that has these coverage options:

  • Individual
  • Individual + 1
  • Individual + 2 or more
  • Family
  • Medicare supplement

To define this plan, the Organization selects Coverage Options in the Coverage Type field.
Coverage Amounts

You can define a coverage amount as a specific flat amount, a chosen amount based on set increments, or a calculation using a percent or multiple of an employee's salary.

This means that you can define an employee life plan in which an employee can elect a coverage amount of one to five times their salary or a disability plan that offers coverage as a percentage of the employee's salary.

With the Organization's Supplemental Life plan, employees can select coverage in salary multiple up to a maximum coverage of $75,000 up to the age of 60. After age 60, the coverage is reduced by 50 percent.

To define this plan, the Organization selects Coverage Amounts in the Coverage Type field.