Many employers offer a standard medical package for their employees, but some go above and beyond to include Voluntary Benefits as part of a well-rounded onboarding experience. Voluntary Benefits help cover various needs including dental, vision, life, accident, disability, and critical illness insurance, just to name a few. In the last few years, more employers have moved toward offering Voluntary Benefits as part of a holistic benefit package because they are more attractive to their workforce demographic now than in prior years. For instance, both Millennials and Gen Z employees have stated that a wide array of benefits is an important draw when considering a job offer, and they are also willing to pay for the costs associated with those Voluntary Benefits. Another perk of these types of benefits is that employees can make pre-tax benefit payments through their payroll deductions.
Voluntary Benefits are optional and are typically paid for by the employee through deductions from their paycheck, although some employers may choose to contribute to specific lines of coverage. One of the great things about enrolling in Voluntary Benefits through an employer is that the costs are much more affordable than seeking out individual voluntary plans. For an employer, this helps your company be able to increase the benefit offerings without much added cost to the business. Because of the strong interest in supplemental benefits, more insurance carriers are also offering bundled pricing and discounts for the more voluntary lines offered. There may be administrative and ancillary costs, offering supplemental lines of coverage that other employers don’t, will set the company apart from other businesses and help with talent acquisition and employee retention.
Most Voluntary Benefit plans include a cash payout for personal expenses based on specific categories relating to the supplemental line of coverage elected. Medical insurance policies are designed to only cover certain types of healthcare issues, so supplemental insurance can help fill in those gaps.
The nice thing about Voluntary Benefits is just that: They are Voluntary. Employees can pick and choose which plans they want to have as part of their customized benefit package. Voluntary Benefits can be added or removed each year at the company’s annual open enrollment, so if they want to add something new the following year, they are welcome to do so. Below are some examples of Voluntary Benefits.
Dental Insurance
This is helpful for routine cleanings, repairing cavities, annual exams, mouth x-rays, and other oral work you may need to have done. Dental insurance also helps you pay less out of pocket for extensive dental work or oral surgery that may be needed.
Life Insurance
There are two different options for life insurance. Employers can offer group term life insurance that is most often paid by the employer, and they can also offer a voluntary whole life policy that is paid for by the employee. These policies both pay an elected benefit in the amount to a beneficiary designated by the employee in the event the employee passes away. With Voluntary Life insurance, employees can choose from a broad range of the amount of life insurance they would like to have in place. Some carriers require statements of health to verify there are no pending critical illnesses before employees are approved for higher-requested amounts.
Accident Insurance
This is an add-on policy that pays lump sums after an employee suffers an accident – including emergency treatment, burns, ambulance transportation, fractures, dislocations, surgeries, and eye injury. Unexpected accidents happen every day, but accident insurance can help employees on a smoother path back to normal life so they can resume their personal and work duties sooner. The benefit payment can be used to help cover out-of-pocket medical expenses, as well as transportation for appointments or anything around the home.
Critical Illness Insurance
This is a great way for companies to help their employees by adding more financial protection to be used in the event of an unexpected diagnosis or severe medical condition. This works as a cash payment back to an employee if they experience a serious illness like a stroke, heart attack, cancer, Parkinson’s disease, and other covered major illnesses. It is a way to help pay for expenses that an employee incurs while managing their diagnosis. Some critical illness plans can pay up to $50,000, and some cover more than one occurrence of the same condition.
Hospital Indemnity Insurance
Hospitalizations can happen to anyone, and many unexpected costs add up on top of the medical bills. Those other costs include childcare, transportation, help around the house after surgery, and even taking care of pets. When employees are admitted to a hospital for an extended amount of time, hospital indemnity insurance can help cover those additional costs that are incurred, and can even help with high deductibles, copayments, and prescription drugs.
Cancer Insurance
Employees can receive payments for a vast number of services related to diagnosis, annual cancer screenings, treatment, and procedures. This type of benefit pays directly to employees (not their providers) for the diagnosis and treatment of cancer. This can also help provide a financial safety net to cover cancer-related expenses that medical insurance does not cover, so you can get through the recovery process.
Mental Health and Wellness
So many employees can benefit from having a mental health counselor manage both work and personal-related stress. Employees deserve readily accessible help to cope with anxiety, stress, or burnout from their everyday lives or jobs. Many mental health professionals are accessible 24/7 to help address each employee’s personal needs promptly. When offered through the workplace, some policies allow the employer to receive regular, secure reporting on utilization, trends, and progress, while protecting the privacy of employees.
Identity Theft Protection
Some carriers have the option to enroll in fraud monitoring and identity management services. This offers 24/7 support when your identity has been compromised and can help with document replacement if you have had items lost, stolen, or destroyed like social security cards, passports, driver’s licenses, or birth certificates. Credit bureau reports and credit score monitoring are also part of this plan.
Pet Insurance
Employees can have the option to elect pet insurance that includes 24/7 pet telehealth visits and guidance to find the nearest emergency vet clinic. Programs can also include savings on pet medications, training and socialization classes, and discounted dog sitting and dog box subscriptions.
Gauge What Voluntary Benefits are Valued
As an employer, you want to be sure you include Voluntary Benefits as part of your benefits package that complement what you already offer for your employees. Sending out an employee benefits survey can help gauge the employees’ interest in certain voluntary benefits to see if they would be beneficial for your employees. You don’t want to add voluntary lines of coverage that detract from your company-sponsored plans. Rather, you want to offer additional benefits that enhance a base medical plan. For example, help fill in gaps where more assistance can be given.
Voluntary Benefits offered through an employer have a much higher value to the employee when compared with the cost and coverage an employee could get on their own through an individual plan. Group plans have more flexibility in their plan design and coverage because they are written for an employer and a group of employees rather than for a single individual.
Some of our vendors throw in extra resources for employees as part of a package deal. For example, if you write a Dental, Vision, and Disability policy through one carrier, that carrier may include an Employee Assistance Program (EAP) or Will Prep at no additional cost for all employees enrolled on the other policies. EAPs can help with stress management, nutrition support, legal or financial issues, and emotional well-being.
Recent studies have shown that employees are more likely to be satisfied when they have a variety of benefits offered to them and the benefits are communicated to them in an easy-to-understand manner. By offering meaningful benefits to your employees, they have the option to improve their health and well-being, which can also be a positive cascade to help them be a better and more diligent employee.
