Voluntary benefits are services or products offered by employers, often at discounted rates, as a perk of employment. Employers can provide benefits that employees want, while employees will have a variety of insurance options available in one convenient place and as the name implies, it is optional to purchase.

They generally allow employees to enroll in the benefits that are most important to them, are cost-efficient and portable, and contribute to an employee’s work-life balance. Because of this, voluntary benefits have become a core component of many companies’ benefits strategies.

There are four key characteristics to these offerings:

    Employee-paid

    Offered through an employer

    Solicited and enrolled through a carrier or enrollment firm

    Paid via automatic payroll deductions

Some common voluntary benefits include:

    Disability income insurance

    Accidental death and dismemberment insurance

    Dental insurance

    Vision insurance

    Pet health insurance

    Supplemental health insurance

    Gym Memberships

    Identity theft insurance

    Travel Insurance

     Car Insurance

     Employee Assistance Programs

     Legal Counseling

     Homeowners’ Insurance

     Mortgage Services

     Student Loan Repayment Programs

   Financial Counseling

   Tuition Reimbursement

Employers should consider expanding their benefit offerings to include voluntary benefits because they are not only cost-efficient but also easy to implement, and employees are looking for them. Voluntary benefits appeal to both employee and employer needs.

Employer advantages include:

                  A cost-efficient way to supplement health care benefits

    Increased expense control in the face of rising benefits costs

    Improved employee morale

Employee advantages include:

                  Affordable premiums

    Easy enrollment process

    Freedom to choose benefits that suit their needs

Voluntary benefits may not be the right solution for all employers and employees. Employers should examine their current benefits package to determine which benefits are popular by surveying their employees.  In addition, focus groups with employees can help determine which voluntary benefits they would prefer.

Even if they decline to participate, employees usually appreciate it when their employer offers voluntary benefits.  They may use them as they cycle through different phases in their career and personal life.