What does Cafeteria Plan mean? Read on to discover the definition & meaning of the term Cafeteria Plan - to help you better understand the language used in insurance policies.
A cafeteria plan is a type of employee benefit in which an employer allows a certain percentage of the employee's pre-tax earnings to be put into a special account. This account can be used by the employee to pay for things like life insurance premiums o medical expenses not covered by insurance.
We hope the you have a better understanding of the meaning of Cafeteria Plan.