As health care costs continue to rise, so has the demand for voluntary benefits. Since many employers find it increasingly difficult to provide employees with a complete benefit package, voluntary benefits have become an ideal solution. Voluntary benefits allow employers to offer benefits that are attractive to employees without added cost to the company. Employees benefit because they have a variety of insurance options available conveniently in one place, and often with lower premiums than individual policies they would have bought themselves.

What are voluntary benefits?

Voluntary benefits are coverages and products made available to employees for elective purchase. These programs have four key characteristics:

• 100% employee-paid
• Offered through an employer
• Solicited and enrolled through a carrier or enrollment firm
• Paid through automatic payroll deductions

Because of their cost efficiency and portability, as well as their contribution to an employee’s work–life balance, voluntary benefits are becoming a central component of many companies’ overall benefits strategies.

What are some common voluntary benefits?

Your employer might be offering voluntary benefits that you are overlooking. To maximize your savings, here are some commonly provided voluntary benefits to become familiar with:

Pet insurance—If you have multiple pets or one with medical issues, pet insurance can help pay for veterinary bills and ease the burden of high-cost procedures, like surgeries.

Employee discount programs—The purpose of these programs is to help you save your hard-earned money. Employers contract with vendors and merchants to offer you promotions, discounts and group rates.

Identity theft insurance—This type of insurance does not reimburse loss from theft, such as stolen credit card numbers or forged bank checks, but rather prevents further loss once you have already become a victim of identity theft.

Other voluntary benefits may include:

• Permanent life insurance
• Disability income insurance
• Accidental death and dismemberment (AD&D)
• Supplemental health insurance
• Long–term care insurance
• Retiree medical insurance
• Dental/vision insurance
• Auto/homeowners’ insurance
• Prepaid legal services
• Computer purchase programs
• Adoption assistance

What are some specific advantages to offering voluntary benefits?

Voluntary benefits appeal to both employer and employee needs.

Employers:

• Increased expense control in the face of rising benefit costs
• Cost-effective way to supplement benefit cuts or reductions
• Important tools for attracting and retaining valued employees
• Differentiate themselves from competitors (both in offerings and image)

Employees:

• Opportunity to access a broader array of benefits
• Freedom to choose benefits that best suit their needs
• Affordable premiums (often deducted on a pretax basis)
• Portable coverage
• Easy enrollment process
• More convenient and time-saving than buying on their own
• Convenience of payroll deduction
• No medical exams
• More lenient underwriting requirements

Contact Aebly & Associates Insurance Services, Inc.  for more information about voluntary benefits.

This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.  © 2019 Zywave, Inc. All rights reserved.