When reviewing benefits policies, some may reference “portability”, but what does that actually mean? Let’s dive into it.

What is Portability?

Portability is a feature built into certain policies that tie it to the individual rather than the employer. Not many insurance products include portability, meaning if an employee leaves their job, they forfeit the benefit. Portable benefits, however, let an employee take coverage with them when they leave, be it from a change in employment or retiring. Thus, rather than having to cancel their old policy and submit a new application, the policy “ports” or moves with them, saving the hassle of having to reapply and re-establish critical coverage.

The Benefits of Portability – Employees

While not all benefits can offer portability, those that do can help employees save for a rainy day, make the most of their paycheck, and protect them even as they embark on new employment ventures.

• Build Savings: One of the most common examples of a portable benefit are Health Savings Accounts (HSAs). HSAs set aside pre-tax funds that can be used to cover eligible healthcare expenses. The funds don’t expire at the end of the year like Flexible Spending Accounts (FSAs) and can help individuals build up financial security in the case of unexpected medical expenses. For more information about HSAs, check out our blog here: https://piercegroupbenefits.com/blog-post/maximizing-your-health-savings-account-hsa-for-financial-and-physical-well-being/

In addition to HSAs, certain Life insurance policies have the ability accumulate cash value. Life insurance policies with this feature have higher premiums, but a portion of the premium is set aside and earns interest that builds overtime as long as the policy is in force. This cash value can be accessed by the policyholder as the policy permits (although this does reduce the death benefit). The longer the same policy is kept in force, the more this value grows. For more information, check out our Life insurance blog here: https://piercegroupbenefits.com/blog-post/term-life-vs-whole-life-insurance/

• Maximize Paychecks: The cost of voluntary benefits is calculated through a variety of factors, one of the most common of which is age. The younger the applicant, the lower the rate. As such, if the benefit is portable, that lower rate can stay with the individual longer, rather than having to secure a new, higher rate when transitioning to a new employer.
• Protect Coverage: Portable benefits provide an extra layer of safety and support by reducing interruptions in coverage that can arise from changing jobs. The ability to bring coverage with them can help provide peace of mind. Additionally, since the benefit moves with the employee rather than requiring a re-enrollment, this can help the employee avoid dealing with waiting periods, medical questions, and exams.

The Benefits of Portability – Employers

Now more than ever it is crucial to stay up to date and ahead of the curve when it comes to creating a benefits portfolio. Offering a selection of portable benefits can help attract and retain top talent, knowing that they’re investing in their future and building safeguards that will last them for years to come.

Partnering with Pierce Group Benefits

Employers who partner with us to offer select portable voluntary benefits display a deepened commitment to supporting their employee’s goals and wellbeing. By offering benefits with this ability, employees gain access to safety net to know that their coverage can move with them as they grow in their careers and explore the journeys that their paths take them. These policies offer additional protection and peace of mind for employees and their families. For questions about portable benefits or to learn more, contact your Pierce Group Benefits Account Executive or email partnership@piercegroupbenefits.com.