What is voluntary benefit coverage?

What is voluntary benefit coverage?

Voluntary benefits—also called voluntary group insurance—are plans provided to employees at little to no cost to the employer. Voluntary benefits allow employers to offer more extensive coverage without added costs, and help employers save on taxes.

What are some examples of voluntary benefits?

Voluntary benefits are products—such as life, disability, critical-illness and accident insurance, as well as pet coverage, ID theft protection, legal services and financial counseling—offered through an employer but paid for partially or solely by workers through payroll deferral.

What is voluntary benefit deduction?

Voluntary benefits are services and/or goods that an employer offers at a discounted group rate but are paid for (either fully or partially) by an employee through a payroll deduction. Voluntary benefits are supplemental to other traditional benefits (health insurance, retirement, etc.)

What are three examples of voluntary fringe benefits?

Examples of Voluntary Benefits:

  • Life insurance.
  • Dental insurance.
  • Vision insurance.
  • Disability income.
  • Car insurance.
  • Long-term care coverage.
  • Medical supplement plans.
  • Homeowner’s insurance.

What are the benefits of voluntary employee benefits?

Benefits to the business. Employers can offer voluntary benefits at no direct cost (i.e. 100% employee-paid), leaving them with just the cost of administration. With the cost of health care on the rise, employers are starting to shy away from providing top end, ‘cover all’ primary health care benefits.

When do employers consider voluntary benefits as add ons?

Employers no longer consider voluntary benefits as simply add-ons but rather as “a way to address a host of employee needs, offer choice and allow employees to personalize their rewards,” said Lydia Jilek, director of voluntary benefits at consultancy Willis Towers Watson.

Why are voluntary health insurance plans so popular?

Many voluntary benefits are also portable, meaning that if an employee should need to switch jobs, they can continue to keep the coverage as long as they pay the premiums, making a voluntary plan easy to administer and appealing. Voluntary benefits can complement core offerings such as life insurance or disability insurance.

What was the percentage of voluntary benefits five years ago?

Five years ago, 41 percent of employers said voluntary benefits would have little importance. YOU’VE READ 3 of 3 FREE ARTICLES THIS MONTH. You have successfully saved this page as a bookmark.