The Advantages of Voluntary Benefits for Employers

Most employers view reducing costs and benefits plan optimization as their most important benefits strategy. Employers are seeking out new solutions to help them meet the healthcare reform mandate of providing affordable coverage without incurring additional costs.

Historically, these ancillary benefits have provided companies a cost-effective and personalized suite of products designed to help them attract and retain top talent. But in today’s environment where employees and their families are likely to incur more out-of-pocket expenses, voluntary benefits can cost-effectively fill gaps in your coverage.

Voluntary benefits have the added value of rounding out core offerings while appealing to a wider group of employees. For instance, executives with athletic children will focus on accident policies to provide the added coverage needed in the event of a serious injury not otherwise covered by their major medical policy. Employees with young families may opt for added life insurance or financial counseling. Employees enrolled in voluntary benefits programs enjoy greater financial stability compared to those not offered such benefits

Voluntary Benefit Offerings

Voluntary benefits Increase employee satisfaction and span the coverage gap while addressing the basic life needs including health, wealth accumulation and lifestyle requirements. The following voluntary benefits can be part of your employer benefit program offerings. 

71% of business leaders say that their employees are interested in customizing benefits to meet their needs.1          

1EyeMed survey of 552 business leaders

Dental Insurance supports employees’ dental health and significantly reduces out-of-pocket expenses.

Vision Care covers services and products (glasses, contacts, etc.) provided by eye care professionals.

Accident complements an existing health plan and closes the coverage gap from out-of-pocket expenses such as deductibles, copays, and non-covered medical services.

Critical Illness/Cancer bridges the gap between traditional medical coverage and disability, providing protection against potential financial consequences

Life Insurance provides employees with essential financial protection for their families following the insured’s death.

Short and Long-Term Disability Income protects employees’ income during periods where the insured is unable to work.

The Benefit of Voluntary Benefits

The voluntary benefits outlined above are coverages and products available to employees through personal election. They contribute to an employee’s work-life balance, are cost efficient and portable. Voluntary benefits are important because: 

  • They can be 100 percent employee-paid with premiums paid via pretax payroll deductions
  • Coverage's are available to most full-time and part-time employees
  • Most prices for policies are locked in once issued and will not go up in cost — so there is no annual renewal
  • The employer provides the benefit options from which employees select only those most relevant to their needs and also manage the costs of same
  • The products are solicited and enrolled by a carrier or enrollment vendor
  • Benefits administration is streamlined by automatically deducting the cost through payroll deductions

For these and other reasons, employers are including voluntary benefits
as a vital component of their overall benefits strategy. Remaining
competitive, attracting and retaining top talent and ensuring the financial
well-being of employees can be accomplished through a comprehensive
voluntary benefits program.