Definition: Voluntary benefits, also known as supplemental benefits or voluntary insurance, are additional insurance products or coverage options that employees can elect to purchase. These benefits are not typically provided by the employer as part of the core benefits package but are offered through the employer's benefits program.
Employee Choice: Voluntary benefits are entirely optional, and employees can choose to participate or decline coverage based on their individual needs and preferences. These benefits are typically paid for by employees through payroll deductions.
Types of Voluntary Benefits: Common types of voluntary benefits include:
Life Insurance: Additional life insurance coverage for the employee or their dependents.
Disability Insurance: Coverage for short-term or long-term disability.
Accident Insurance: Coverage for injuries resulting from accidents.
Critical Illness Insurance: Coverage for serious illnesses, such as cancer or heart disease.
Dental and Vision Insurance: Additional coverage for dental and vision care.
Legal Services: Access to legal services or identity theft protection.
Pet Insurance: Coverage for veterinary care for pets.
Benefits for Employers: Offering voluntary benefits can be advantageous for employers because it allows them to enhance their benefits program without incurring additional costs. It can also help attract and retain employees by providing a broader range of coverage options.
Worksite Benefits
Definition: Worksite benefits, also known as worksite insurance or voluntary worksite benefits, are a subset of voluntary benefits that are often sold and administered in a workplace setting, often through group insurance policies. They are typically offered by insurance carriers or providers directly to employees at their place of work.
Convenience: Worksite benefits are designed to be convenient for employees to purchase, as they are presented as part of the employer's benefits enrollment process. Employees can choose to participate and pay for these benefits through payroll deductions.
Types of Worksite Benefits: Common worksite benefits include many of the same options as voluntary benefits, such as supplemental life insurance, disability insurance, critical illness coverage, accident insurance, and more.
Employee Education: Worksite benefits providers often work closely with employers to educate employees about the available options, explain the benefits, and assist with enrollment. This can help employees make informed choices about their coverage.
Group Rates: Worksite benefits are typically offered at group rates, which can be more cost-effective for employees than purchasing similar coverage individually.
In summary, both voluntary benefits and worksite benefits give employees the opportunity to customize their insurance coverage to better meet their individual needs and circumstances. Employers often facilitate the availability of these benefits, making them easily accessible and providing employees with a broader array of choices to enhance their overall benefits package.
