HR Glossary for HR Professionals

Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.

Ancillary Benefits

What Are Ancillary Benefits?

Ancillary benefits supplement the standard benefits packages that are typically offered. These employee benefits are becoming more and more crucial as they provide coverages that go well beyond typical healthcare plans and often cover more extensive medical expenses. 

Another name for ancillary benefits is Fringe benefits. Fringe benefits are becoming more and more necessary for attracting top talent and full-time employees. It is no longer enough to offer bare-bones health insurance plans. 

  • People need dental and vision insurance. Health insurance alone is not going to keep your employees healthy. 
  • Most health insurance plans don’t cover things like taking blood or riding in an ambulance. Extended hospital stays are also very expensive. Offering ancillary benefits can help your employees to remain healthy and happy for the long term.
  • Life insurance coverage is another huge benefit of ancillary insurance. Typically health policies do not cover the death of an employee. Having a life insurance policy can offer peace of mind for employees with dependents, spouses, and families in general. 
  • These benefits go well beyond standard health plans. They often cover much more extensive medical expenses, such as ambulance rides, overnight stays in the hospital, and many others. 
  • These benefits allow for a smooth onboarding process. Ancillary benefits are becoming an integral part of the modern workplace.

Types of Ancillary Insurance

Some common examples of ancillary benefits include:

  1. Vision coverage
  2. Dental coverage
  3. Life insurance
  4. Short-term disability insurance 
  5. Long-term disability insurance
  6. Overnight hospital expenses.

Related Terms: Fringe Benefits

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