The voluntary benefits market is growing because employers can offer supplemental coverages that employees pay for themselves, often at little or no direct cost to the company.
Because voluntary benefits are sold in a group setting, employees often get lower rates, can use payroll deduction for premiums, and save the time of shopping for coverage on their own.
MetLife's ongoing Study of Employee Benefits Trends and other industry research show steady interest in voluntary options from both workers and employers.
Many employees value voluntary benefits for the extra coverage and the ability to choose options that better fit their needs, while some employers may underestimate that employee interest.
The most in-demand voluntary products are those that supplement core medical, life, or disability coverages, such as dental, critical illness, hospital supplemental, disability buy‑up, and supplemental life insurance.
Demographic trends are also increasing interest in long‑term care and financial planning products as workers face eldercare responsibilities and balance retirement saving with other priorities like college funding.
Other voluntary products commonly offered include vision insurance, legal services plans, auto/home/renters coverage, and pet insurance.
Employers who want to offer these options can learn more from Employee Paid Benefits (Voluntary Benefits).
Deciding on a vendor or product
When choosing a voluntary benefit product or carrier, keep a few practical points in mind before adding it to your benefits lineup.
- Is this a product employees have asked for or demonstrated interest in through surveys or requests?
- If your HR or benefits staff must administer the product, are enrollment and payroll deduction processes straightforward and time‑efficient?
- After reviewing policy details, does the coverage perform as the product name implies?
- Is the carrier or vendor financially stable and reputable?
Vendors and plan designs vary, so review provider materials carefully; you can compare options at Voluntary Services Insurance.
If you are unsure which options to add, discuss them with an insurance professional or talk to an agent.
Frequently Asked Questions
What are voluntary benefits?
Voluntary benefits are supplemental insurance products offered through the workplace but paid for by employees, often using payroll deduction and group rates.
Who pays for voluntary benefits?
Employees generally pay the full premium for voluntary benefits, though employers facilitate enrollment and payroll deduction in many cases.
How should employers decide which voluntary benefits to offer?
Start by surveying employee interest, consider administrative impact on HR, review policy details for clarity, and check carrier financial strength and reputation.
Can voluntary benefits replace employer‑sponsored coverage?
No; voluntary benefits are intended to supplement, not replace, employer‑sponsored core coverages like group health or basic life insurance.