Insurance:Group, Life, Home, Auto
Insurance Glossary

Voluntary Benefits

Voluntary Benefits--as the name suggests--let employees choose whether they wish to enroll or decline a particular line of coverage. Types of coverage include, but are not limited to, additional life insurance (for ee, spouse and/or children), critical illness insurance, long term disability, long term care, cancer insurance, dental insurance and more.

Many employers offer Voluntary Benefits to their employees as it has 3 advantages to employees and employers alike. 1) Provides employees with group discounted insurance products, discounts may range from 35 to 50 % or higher, depending on participation in each product and size of employer group. 2) Solidifies employer/employee relationship by offering more at no cost to the employer. 3) Saves money via Section 125 pretax premium payment: This saves an additional 30% for participating employees (depending on ee tax bracket) of premium, and saves the employer money as gross taxable payroll is reduced by these purchases.

The Benefit Source Inc has years of experience introducing these benefits to employees. If you currently offer voluntary benefits to your ees and participation low, these benefits should be reviewed and professional salaried, not commissioned. independent enrollers should present and assist employees in education and enrollment. Participation should be between 50 and 80% for these products. This is great employee morale booster if presented properly.