Industry Jargon: Voluntary Benefits

A voluntary benefit, or employee-paid benefit, is a common phrase used within the insurance field, but one that the average person may not fully comprehend. Read on to grasp a better understanding of this stop loss insurance key term.

What are voluntary benefits?

Voluntary benefits are insurance plans that are chosen and paid for by the employee to best fit their individual needs. These plans are offered through employers at no direct cost to the organization.  That said, employers are able to choose to contribute to or fully fund voluntary benefit plans.

What are the benefits of voluntary benefits?

A main benefit of voluntary benefits is that the employee has full control and autonomy over which benefits to buy to best suit their personal needs and lifestyle. The list of benefits is quite extensive, covering vision, dental, accident, life and disability, identity theft, and more.  In addition, with the rise of high deductible health plans, the voluntary benefits can help defray the out of pocket expenses to the employee that are a part of the high deductible health plan.

For employers offering the insurance, the motivation can be attracting talented employees by providing a robust benefits package, thereby bettering the workplace. Enrollment for voluntary benefits is also easy for both employees and employers alike, with employers only paying for the cost of administration.

What type of employee qualifies for voluntary benefits?

In general, workers who meet the minimum number of hours to grant the eligibility for coverage from these types of plans can qualify. There is no discrepancy between full-time employees or part-time employees. However, independent contractors do not usually qualify for these insurance services. If you would like to discuss more about your personal options for voluntary benefits, please contact us.


Contact Block (Blog)

Recent Comments

    Newsletter Signup

    Signup to start receiving the latest newsletters from StopLoss right to your email.
    Stay up to date on insurance trends and insights.

    Back to Top

    In 2011, the top 5 most expensive medical conditions treated in US hospitals were: Septicemia, Osteoarthritis, Complication of device, implant or graft, Liveborn, and Acute myocardial infarction

    From 2010 to 2013, the number of claims that were individually $1 million or above rose by 1,000%

    In 2017 approximately 18% of the American public will purchase insurance through exchanges, radically transforming the health insurance landscape.

    In 2014, 98% of large firms (= 200 Workers) offer 1+ wellness programs to their employees.

    The most costly 1% of patients account for 20% of national health expenditures – accruing average annual expenses of nearly $90,000 per person.

    6% of firms offering fully-insured plans report they intend to self-insure because of Obamacare.

    In 2014, PPO plans remained the most common plan type, enrolling 58% of covered workers.

    In 2012, 93% of businesses with 5,000+ employees and 80% of companies with 1,000-4,999 employees were self-funded

    Massachusetts has the third-highest prevalence of self-funded insurance in the small-group market (Fewer than 50 employees).

    In 2013, the average deductible was $2,906 for individuals selecting plans from marketplaces. This compares with average deductibles of $1,135 for an individual with employer coverage.

    In 2013, the average annual premiums for employer-sponsored health insurance are $5,884 for single coverage and $16,351 for family coverage, up 5% and 4% respectively from 2012.

    From 2010 – 2013, cancer followed by chronic/end stage renal disease and leukemia accounted for the top 3 costliest illnesses.