FAQ’s2018-07-10T14:07:12+00:00

Frequently Asked Questions

CY125 is a supplemental benefit plan. It wraps around your existing major medical plan and fills in the gaps with benefits such as hospital indemnity, accident and gap insurance. Combined, these cover up to 100% of employees’ out-of-pocket expenses. CY125 requires no investment by the employer, and no out-of-pocket payments by employees. Employers actually enjoy an average payroll tax saving of $350 per year per employee enrolled – and our average participation rate is over 90%. Available since 2010 and fully compliant with current tax code, hundreds of companies and tens of thousands of employees have been enrolled.
CY125 truly lowers your taxable income, without changing your tax-home pay. So you owe less in taxes, and could actually find yourself in a more favorable tax situation.
The cash value life insurance provided with the program will help offset any reduction in social security benefits. Those funds are available tax-free, unlike Social Security benefits.
These supplemental policies are portable, so you have the ability to take them with you if you leave the company. However, the tax advantages of CY125 are only available with a participating company.
We only utilize top-rated carriers. We have deep relationships with Colonial Life, AIG, and SIS. Offering new benefits through CY Benefits and these carriers will not change any of your existing providers and relationships.
Cafeteria plans are annual plans and coverage can only be modified at each open enrollment, or due to a qualifying event.
Cafeteria plans cannot create additional income, only provide additional benefits.
Many employees can cover their spouse and/or dependents through CY125.

For additional questions, please contact an enrollment support specialist at 877.526.8827