Voluntary beneﬁts help pay for out-of-pocket expenses that major medical and other insurance don't cover. Also called supplemental beneﬁts, voluntary beneﬁts are used to meet a diverse range of needs. Examples include paying for out-of-pocket medical expenses, household bills and travel expenses, as well as replacing missed wages. Many employees like that beneﬁts such as disability, accident and hospital are paid directly to them, so they can use them where they are needed.
The beauty of voluntary beneﬁts is they can be customized for the speciﬁc needs of a business and their employees, catering to certain vocations, stages of life, location and lifestyles.
Payment options for voluntary benefits include:
Advantages to the business
Advantages to employees
Voluntary beneﬁts can be partially funded or even fully funded by the employee. This means businesses have complete control of how much they spend and what options they choose to add.
Depending on the beneﬁts carrier and type of coverage, most businesses with fewer than 10 employees can qualify for many types of voluntary beneﬁts. And some carriers don't have any minimum staﬃng requirements at all.
Many voluntary beneﬁts can be paid with pre-tax income which can save employers and their workers money. Additionally, some carriers can provide technology, tools and educational services that can simplify beneﬁts administration, so small business owners have more time to focus on running their business.
While most employers believe employees value take-home pay over beneﬁts, employees actually value non-medical insurance beneﬁts and voluntary beneﬁts more than employers realize.
Strengthen your business with our quick start guide on voluntary benefits without the jargon or complicated details. And build a well-rounded benefits package that will help attract and retain skilled workers.