What are voluntary benefits?

Optional benefits employees can purchase through their employer, often at group rates, like additional life insurance or accident coverage.

Voluntary benefits are additional insurance products and services that employees can choose to purchase through their employer. These benefits are generally not part of the standard benefits package offered by an employer, such as medical or dental insurance. Employers typically arrange for these benefits to be offered at group rates, meaning that they come at a lower cost than if employees were to purchase them individually. Examples of voluntary benefits include supplemental life insurance, critical illness insurance, accident insurance, and even pet insurance. They provide employees with more options to customize their benefits plan according to their personal needs and life situations.

Imagine Sarah, who works for a mid-sized tech company. Her employer offers a solid health insurance package, but Sarah is concerned about what might happen if she faces a critical illness or a serious accident. Fortunately, her employer offers voluntary benefits that allow her to purchase critical illness insurance and accident coverage at a discounted group rate. This way, Sarah can tailor her benefits package according to her specific needs and feel more secure about her financial future.

Consider your personal and family needs when evaluating voluntary benefits. Review which options are available through your employer and think about any specific risks you want to mitigate, like potential accidents or critical illnesses. Take advantage of the group rates offered, as these can be significantly cheaper than individual plans. It's also a good idea to discuss these options with a financial advisor to ensure they align with your overall financial goals.