Employee Benefit Insurance Plan

Provision by an employer for the economic and social welfare of employees. Generally include: (1) pension plans for retirement; (2) group life insurance for death; (3) group health insurance for illness and accident; (4) group disability income insurance for loss of income due to illness and accident; and (5) accidental death and dismemberment. Dental insurance, eyeglass insurance, and legal expense insurance may be included. These plans are established for the reasons of morale, to reduce turnover, and for tax benefits (contributions are usually deductible as business expenses to employers and not currently taxable income to employees).