EMPLOYERS AND EMPLOYEES WIN WITH VOLUNTARY BENEFITS
The voluntary benefits market is growing because these products allow employers to offer a wider array of supplemental coverage without adding cost to the company. Voluntary benefits are purchased and paid for by employees but are offered through the workplace, making them accessible and convenient.
Because voluntary benefits are offered in a group setting, employees often get group pricing, can pay through payroll deduction, and save time compared with shopping on their own. Employers can learn more about structuring voluntary benefits in The Importance of Voluntary Benefits in Employee Packages.
Research from recurring industry studies shows that workplace benefits remain an important part of total compensation even during economic uncertainty. Many employees say voluntary products give them options to better fit their needs and provide extra coverage that supplements employer-sponsored plans.
From the employer’s perspective, some organizations underestimate how much employees value voluntary benefits. Interest among employees can outpace employers’ emphasis on these offerings, which may be a missed opportunity to improve overall benefit satisfaction.
The most in-demand voluntary benefits are those that supplement core medical, life, or disability coverages. Common examples include dental, critical illness, specific illness, hospital supplemental, medical supplemental, disability buy-up, and supplemental life coverage.
Demographic trends are also increasing interest in long-term care and financial planning products as more employees face eldercare decisions and mid-career workers balance retirement saving with college costs for children. For connections between voluntary benefits and workplace wellness programs, see Voluntary Benefits and Workplace Wellness.
Other voluntary products can include vision insurance, legal services plans, auto/homeowners/renters insurance, and pet care insurance.
Deciding on a voluntary benefit
- Is this a product employees have expressed interest in through requests or workforce surveys?
- Will any required administrative processes for HR or benefits staff be easy to understand and economical in time?
- After examining detailed product information, does the coverage do what its name implies?
- Is the carrier or vendor financially stable and reputable?
If chosen properly, voluntary benefits can be a welcome, win‑win supplement to an employer’s benefits package.
If you want personalized help evaluating options, talk to an agent.
Frequently Asked Questions
What are voluntary benefits?
Voluntary benefits are supplemental insurance products offered at the workplace but paid for by employees, such as dental or supplemental life coverage.
How do employees pay for voluntary benefits?
Most voluntary benefits are paid through payroll deduction, which spreads cost and simplifies enrollment and payment.
Do employers bear the cost of voluntary benefits?
Typically no; voluntary benefits are employee-paid, though employers may handle administration and payroll deductions.
Which voluntary benefits are most popular?
Popular selections include dental, hospital and medical supplements, critical illness, disability buy-ups, and supplemental life insurance.