Work Benefits Terms and Vocabulary Career Counseling and Support Services The Ohio State University 1640 Neil Avenue, Second Floor Younkin Success Center ccss.osu.edu

Benefits Career Counseling and Support Services Medical Benefits Dental Benefits Vision Care Benefits Life Insurance Benefits Disability Benefits Bonuses Paid time off Unpaid leave Sick leave Personal leave Bereavement leave Maternity leave Child care

Insurance Vocabulary Career Counseling and Support Services Premium – the amount paid for insurance: monthly, quarterly, semi-annually, yearly Benefit – amount of money the policy pays Beneficiary – person, persons, or organizations receiving the benefit Lump Sum: an option for paying benefits to the beneficiary Multiple Payment Option: an option for recurring payments of benefits to the beneficiary, payments are sometimes called annuities Riders – additional conditions added to the insurance contract providing additional benefits Term – length of time a policy is effective Maturity Date – the date the face amount of a policy becomes payable

Other Types of Insurance Career Counseling and Support Services Disability: a policy designed to pay benefits if the policy holder becomes disabled with the intent of the beneficiary using the benefits for living and medical cost until the policy holder is able to resume work Workman’s comp: a public fun designed to pay settlements to injured workers Long-term care: a policy intended to help pay the high costs of long term care (such as hospital, nursing home, or in-home care) Medical, Dental, Hearing, Vision

Types of Life Insurance Career Counseling and Support Services (Note: Life insurance may require a physical before an insurance company will extend coverage) Short-Term : Insurance that lasts for a specified number of years and no longer Premiums are usually guaranteed not to increase for the length of the policy Meets temporary needs (such as child care) Renewable: some policies may be renewed after the term has expired Conversion: portions of some policies may be changed over to permanent insurance

Types of Life Insurance Career Counseling and Support Services Long Term: Insurance that lasts either for the life of the policy- holder or until the policy-holder attains 100 years of age Premiums may be paid for a set term or indefinitely

Types of Life Insurance Career Counseling and Support Services Long Term/Whole-Life: May accumulate interest (which can be tax free); may be used as collateral for loans (if the policy-holder dies before the loans are paid, the balance is usually deducted from the benefit paid to the beneficiary) Types: Fixed – Life insurance policy wherein benefits are worth a set value Variable – Life insurance policies wherein premiums are invested; the total value of these policies change with the performance of the stock market

Retirement Plans Career Counseling and Support Services 457 Plan: Retirement plan provided to federal government employees 401k plan: Retirement plan provided to private sector employees 403b plan: Retirement plan provided to state employees IRA: Private retirement plan that individuals contribute to independently Annuities: Retirement benefits provided through insurance plans

Retirement Plans - Information Career Counseling and Support Services Money may be withdrawn: Termination of employment In-service withdrawal If you become permanently disabled Death of a participating employee Money withdrawn early may be subject to a heavy tax penalty Distributions can be received upon retirement: Early retirement is upon 55 th birthday; retirement is upon 65 th birthday

Retirement Plans - Vocabulary Career Counseling and Support Services Pre-tax contributions – contributions made to a retirement account that are deducted from the paycheck before earnings are subject to income tax Compounding – when earnings from the retirement contributions are re-invested in the retirement funds Inflation – increase in the price of goods or services

Retirement Plans - Vocabulary Career Counseling and Support Services Discretionary matching – employer contributions to a retirement plan that matches employee contributions up to a certain percentage Vested – to become fully entitled to your contributions your employer has made to your retirement plan, including matching and discretionary contributions, after a certain period of service with the employer Profit-sharing contributions – elective employer contributions to a retirement plan designed to share company profits with employees; a type of incentive program

Additional Benefits Career Counseling and Support Services Relocation expenses/cost of living adjustments Severance packages Professional membership dues Tuition reimbursement Desirable office Technology or special equipment (i.e. computers) Company Car Education Training Programs

Questions to ask about Benefits Career Counseling and Support Services Can (medical/dental/vision) coverage be extended to non- married partners? What kind of leave am I entitled to if I take time off to care for a sick family member? Do you offer paternity leave? How does leave/vacation impact my productivity requirements? Do you offer any benefits specific/unique to your company?

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Career Counseling and Support Services

- Everest Institute “If you’re at a place where you’re stuck then that’s called a job … if you’re at a place where you can constantly grow, that’s a career”

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