Voluntary benefits, also known as voluntary employee benefits or voluntary employee-paid benefits, are additional perks or insurance coverages that employers offer to their employees. Unlike core benefits (such as health insurance or retirement plans) that employers may partially or fully fund, voluntary benefits are typically optional and are paid for entirely by the employees who choose to enroll in them.
These benefits can vary widely and may include options such as:
1. Supplemental health insurance:
Policies that cover specific health issues or provide additional coverage beyond what is offered by the employer’s standard health insurance plan. Examples include critical illness insurance, cancer insurance, or hospital indemnity insurance.
2. Dental and vision insurance:
Coverage for dental care and eye care expenses, which may not be fully covered or included in the standard health insurance plan.
3. Disability insurance:
Provides income replacement in case an employee is unable to work due to a disability, covering a portion of their salary.
4. Life insurance:
Policies that pay out a lump sum to the employee’s beneficiaries in the event of their death. Employers might offer basic life insurance and allow employees to purchase additional coverage.
5. Accident insurance:
Provides benefits for specific injuries resulting from accidents, covering medical expenses, hospital stays, and related costs.
6. Identity theft protection:
Services that help employees protect their personal information and assist them in case of identity theft.
7. Legal assistance:
Access to legal services or advice for personal matters, such as will preparation or estate planning.
8. Wellness programs:
Subsidized gym memberships, health coaching, or other programs aimed at improving employees’ overall health and well-being.
Voluntary benefits are designed to give employees more choices in tailoring their benefits package to meet their individual needs and lifestyles. Employers often negotiate group rates for these benefits, making them more affordable than employees purchasing similar coverage individually. Offering a variety of voluntary benefits can enhance the overall employee benefits package and improve job satisfaction and retention.
Contact Noemi Rivera to discover how offering voluntary benefits to your employees is a smart way to improve employee retention and morale.