What are voluntary benefit plans?

Voluntary benefit plans, often referred to as voluntary benefits or worksite benefits, are employee benefit programs offered by employers that allow employees to choose and purchase additional insurance or perks through their workplace. These benefits are typically paid for by employees through payroll deductions, although employers may choose to contribute partially or fully to some voluntary benefits. Voluntary benefit plans can provide employees with a range of coverage options and services that can complement their core employee benefits package. Common types of voluntary benefits include:

• Life Insurance: Employees can purchase additional life insurance coverage for themselves and their dependents.
• Disability Insurance: This provides income replacement if an employee becomes disabled due to illness or injury and cannot work.
• Dental Insurance: Coverage for dental care expenses, which may include preventive, basic, and major dental services.
• Vision Insurance: This covers eye exams, eyeglasses, and contact lenses, helping employees maintain their eye health.
• Accident Insurance: Coverage for medical expenses resulting from accidental injuries.
• Critical Illness Insurance: Pays a lump sum or periodic benefit in the event of a serious illness like cancer, heart attack, or stroke.
• Hospital Indemnity Insurance: Provides a fixed payment for each day an employee is hospitalized, helping to offset associated costs.
• Cancer Insurance: Coverage for the costs associated with cancer diagnosis and treatment.
• Identity Theft Protection: Offers services to help employees recover from identity theft, such as credit monitoring and resolution assistance.
• Legal Services: Provides access to legal advice and services, often for common personal legal matters.
• Pet Insurance: Covers veterinary expenses for employees' pets.
• Financial Counseling: Offers financial planning and counseling services to help employees manage their finances.

Voluntary benefit plans can be attractive to employees because they provide access to coverage and services they may not easily obtain or afford on their own. Employers often offer these plans as part of their total compensation package to attract and retain talent without incurring significant additional costs. Voluntary benefit plans can vary widely in terms of options and providers, allowing employees to customize their coverage to meet their specific needs.

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