Question

SCENARIO Your organization, located in Manitoba, will be enhancing the group benefits plan offered to employees in two months by adding accidental death and dismemberment (AD&D) coverage and vision care coverage. The organization will pay 50% of the cost of the AD&D premiums and 50% of the cost of the vision care premiums, with the employees paying the other 50% of each premium. The Manager of Human Resources, Sophie Martin, has requested that you, as the Payroll Supervisor, prepare a communication for the employees, explaining how these new benefits will impact their net pay. Prepare your response (200 - 350 words) using your name, correct spelling, grammar and punctuation. You will be penalized if you are excessively over or under the suggested word count. Your response must be stated in your own words and should be based on the course material, your experiences, knowledge gained through the course and at least one external government resource.

Answer 1

Date: 19.09.2020

To all Employees,

Subject: Inclusion of Accidental Death & Dismemberment (AD&D) coverage & Vision Care coverage.

Dear All,

With reference to above subject, I would like to inform you that our organization has decided to include AD&D coverage and Vision coverage, as a part of protective measure, in our employee benefit policy.

Accidental Death & Dismemberment (AD&D) coverage is usually a rider to a health insurance or life insurance policy. The rider covers the unintentional death or dismemberment of the insured. Dismemberment includes the loss-or the loss of use-of body parts or functions (e.g., limbs, speech, eyesight, and hearing). Because AD&D insurance is limited and generally covers unlikely events, it is supplemental life insurance and not a substitute for term life insurance.

Vision care insurance will cover routine eye health expenses such as eye exams, contact lens fittings, contact lenses, and eyeglass lenses and frames. The plan may cover the cost of these items in full, up to a preset limit, or it may require the policyholder to pay a flat fee or percentage fee to share the expense with the insurer.

The organization will pay 50% of premium of both the coverage and the rest 50% will be paid by employees, by deducting the same from payout.

The aim to introduce above two policies is to cover the precious life of every employee and provide financial support in abnormal circumstances.

In case of further information, please feel free to contact at Admin Office.

Thanks for your kind attention.

Regards,

Adam

Payroll Supervisor