Voluntary benefits provide a solution for employers to offer a complete benefits package to employees. Employers are able to provide benefits that employees want, while employees will have a variety of insurance options available in one convenient place.
What Are Voluntary Benefits?
Voluntary benefits are coverages and products made available to employees for purchase. They generally allow employees to enroll in the benefits most important to them, are cost-efficient and portable, and contribute to an employee’s work-life balance. Because of this, voluntary benefits have become a core component of many companies’ benefits strategies. There are four key characteristics to these offerings:
- Employee-paid
- Offered through an employer
- Solicited and enrolled through a carrier or enrollment firm
- Paid via automatic payroll deductions
Some common voluntary benefits include:
- Disability income insurance
- Accidental death and dismemberment insurance
- Dental insurance
- Vision insurance
- Pet health insurance
- Supplemental health insurance
- Identity theft insurance
Advantages of Offering Voluntary Benefits
Employers should consider expanding their benefit offerings to include voluntary benefits because they are not only cost-efficient but also easy to implement, and employees are looking for them. Voluntary benefits appeal to both employee and employer needs.
Employer advantages include:
- A cost-efficient way to supplement health care benefits
- Increased expense control in the face of rising benefits costs
- Improved employee morale
Employee advantages include:
- Affordable premiums
- Easy enrollment process
- Freedom to choose benefits that suit their needs
Voluntary benefits may not be the right solution for all employers and employees. Employers should examine their current benefits package to determine which benefits are popular. In addition, talking to employees can help determine which voluntary benefits they would prefer. This section will provide you with a breakdown of specific voluntary benefits, like vision or dental insurance. Employers looking to learn more about different voluntary benefits can select that benefit.