Available as an addition to the core benefits package offered through the workplace, voluntary benefits are sometimes referred to as supplemental insurance or employee-paid benefits. This coverage allows employees to personalize their benefits and save money on coverage through group rates.
Over the past decade, one trend that has been on the upswing is the importance of voluntary benefits in the general mindset. A 2017 study of large employers (Willis Towers Watson's 2018 Emerging Trends: Voluntary Benefits and Services Survey) revealed that although 41% felt voluntary benefits would have had little importance five years ago, today that percentage has dropped significantly. Instead, 69% now believe voluntary benefits will be a major component of their overall benefits strategy in three to five years.
In this same study, the authors identified four critical life needs that are fulfilled by voluntary benefits:
- Personal - addressing the interests and needs important to the individual
- Wealth - protection of assets and income
- Health - encouraging healthy lifestyle and overall well-being of the individual, and reducing health risks
- Security - protecting dependents, vulnerable individuals, and even identity safeguards
While traditional options such as life and disability have always been benefits package staples, employees' financial issues are now frequently being addressed in more comprehensive plans that cover a wide array of choices such accident, critical illness, and cancer coverage.
Offering attractive benefits as part of your overall package can mean the difference between whether or not a prospective employee accepts a job offer. Your Mountcastle agent can tell you more about the many types of voluntary benefits available and will help you assemble a robust package that can offer your employees coverage for practically every facet of life.
Voluntary Benefits FAQs
Generally businesses are able to provide voluntary benefits to their employees at little or no cost to themselves. These benefits are typically available at a much reduced group rate.