What are Voluntary Benefits?
Voluntary benefits are insurance products that employees may choose to purchase through their companies at rates that are lower than they could get on their own. A few examples of voluntary benefits are dental, vision, life, disability, supplemental health and cancer insurance. Many employers offer voluntary benefits because they allow companies to provide a more robust benefits package at no cost to them.
How do Voluntary Benefits Work?
Voluntary benefits go beyond basic coverage. Like appetizers before a meal, voluntary benefits come in many varieties that help protect your financial and physical well-being. But a customer pays only for what they order.
For example, for a little extra money deducted from a paycheck each month, a customer might purchase disability insurance that helps offset loss of income if they are unable to work due to sickness or injury. A customer can choose supplemental insurance to cover co-pays, deductibles or other costs of care not covered by regular health insurance. And benefits are paid directly to the employee, so the money can be used however it’s needed.
Many consumers don’t plan for loss of income, or for expenses such as childcare and travel brought on by illness or injuries and not covered by medical insurance. By enrolling in these voluntary benefits, a consumer is rewarded with greater peace of mind. As an added bonus, premiums for voluntary benefits are often paid using pre-tax dollars.
Voluntary benefits may include options such as vision and dental insurance, which can protect more than your eyes and teeth. Annual eye exams, for example, can help detect health problems like diabetes and high blood pressure. And did you know that gum disease is a serious risk factor for heart disease? Keeping your teeth and gums in good shape helps protect your overall health.
Voluntary Benefits Summary
Voluntary benefits allow employees to purchase additional insurance products through their company at rates that are lower than if they bought them on their own. Premiums are paid from pre-tax dollars and deducted from the employee’s paycheck, making payment simple and convenient.
Voluntary benefits are also a way for employers to offer an added incentive to employees without having to pay extra. Everybody wins when voluntary benefits are a part of a company’s employee benefits package.