Voluntary benefits, otherwise known as supplemental insurance are products that are typically offered by employers and are mostly or fully paid for by employees via payroll deduction at a reduced group rate.

Benefits can include:

  • Term or Whole Life Coverage
  • Dental Coverage
  • Vision
  • Disability Income Coverage
  • Accident Coverage
  • Critical Illness Coverage
  • Hospital Indemnity Coverage
  • Identity Theft Coverage
  • Travel Insurance
  • Medical Insurance For Pets

Why do companies offer voluntary benefits?

Voluntary benefits are usually offered by employers as businesses can get a lower rate than individuals, and it is also inexpensive for employers to offer benefit programs. A business will use these programs as an incentive for employees and to retain a talented workforce. It is also an opportunity for an employer to decrease their payroll taxes.

Why are voluntary benefits important to an employer?

If a company can offer a voluntary benefits package, they can opt to reduce their core benefits package to save money while simultaneously offering personal insurance benefits at a reduced group price to employees who may not be able to afford this type of coverage on their own. In this way a small business can compete with larger, more established companies for top talent.

Are voluntary benefits pre-tax?

It depends on the type of voluntary benefit, some are pre-tax paid by employer and some are post-tax paid employee.