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.