Those concerns are prompting more employers to address the financial wellness of their employees, incorporating wider menus of benefits that employees can tailor to meet their personal circumstances, needs and budget. Some of these benefits, once considered ancillary to employers’ core health, protection and retirement offerings, are now being viewed as additional pillars supporting employees’ overall financial wellness.

There are specific benefits that are designed to protect employees’ bank accounts, retirement savings and overall financial wellness:

  • Pre-Approved Emergency Loans: Some programs allow employees to obtain credit online without having to fill out forms or visit a bank. The most helpful programs prequalify employees for credit based on their employment and their ability to repay. Often, employees can repay the loans through payroll deduction. The rates on such loans can be as low as 6 percent. While that rate is higher than the rates assessed on many retirement plan loans, it’s low enough to discourage borrowing from retirement plans and potentially missing out on market gains.

  • Critical Illness Coverage: Medical treatment and other expenses related to a serious illness can quickly run into several thousands of dollars, especially with the growing prevalence of high-deductible health-care coverage. Critical illness policies provide cash for insureds to pay for a myriad of expenses, from medical deductibles and co-pays to pharmaceuticals and comfort-related costs if an employee or a family member suffers a serious illness.

  • Accident Insurance: Few emergencies can derail personal finances more quickly than an injury caused by an accident, especially for those who live paycheck to paycheck. And accidents are more prevalent than many people realize according to the U.S. Centers for Disease Control “Home & Recreational Safety” report which states that emergency rooms treat more than 40 million injuries a year across the country. Policies typically pay cash in a lump sum to cover anything from medical insurance deductibles and co-pays, down time from work and other unanticipated expenses.

  • Disability Protection: Most people can’t make ends meet for more than a few weeks without a paycheck. A disabling accident or illness can easily knock someone out of work for weeks or even months. Group disability policies are available to cover short-term disabilities that last as long as six months or long-term disabilities that can take years or even become permanent. Most workers should secure a policy that protects at least 50 percent of their paycheck and buy additional coverage of up to 60 percent or 70 percent, if available.

All of these benefits are available on a voluntary basis, meaning the employee is responsible for the premiums, at relatively low group rates. Employers can also choose to make the benefits available on a contributory basis, meaning the employer and employee share the costs, or on an employer-paid basis.

Taken together or individually, these protection benefits can arm workers with a financial shield against misfortune while giving them liquidity options other than tapping their retirement or personal savings. Protecting savings—especially retirement savings—promotes long-term financial wellness and can help reduce stress at the workplace.