What is usually required from employees in a Noncontributory Plan?

In a Noncontributory Plan, the key requirement is 100% participation from eligible employees. This type of plan is designed such that the employer pays the entire premium cost for the insurance coverage. Since employees do not contribute any funds towards the premiums, it is essential that all eligible employees participate in the plan to ensure its viability and cost-effectiveness. This also serves to spread the risk among a wider pool of insured individuals, which is beneficial for both the insurer and the employees.

In contrast, partial payment of premiums or voluntary participation would indicate a contributory plan, where employees share the cost of premiums, and therefore participation may not be at a full 100%. Evidence of insurability is typically required in situations where an employee must prove their health status for coverage, but this is not a requirement in noncontributory plans, as the employer assumes the entire risk. The emphasis on 100% participation underscores the collective nature of risk-sharing inherent in noncontributory plans.