Let’s discuss the value of voluntary benefits. In today’s competitive job market, employees are always on the lookout for ways to enhance their benefits package. While a competitive salary is essential, an attractive benefits package can greatly influence your decision to join or stay with a company. One often overlooked but highly valuable component of a benefits package is voluntary benefits. These are supplemental benefits that you can choose to add to your existing coverage, often at a discounted group rate. In this blog, I’ll explore the key benefits of voluntary benefits and how they can complement your current employee benefits.
What Are Voluntary Benefits?
Voluntary benefits are additional insurance products and services that you can opt into, often through payroll deductions. Unlike core benefits that are typically employer-funded, the cost of voluntary benefits are generally paid for by you. However, because they are offered through your employer, they come at a reduced rate compared to what you might pay on the open market. Examples of voluntary benefits include accident insurance, cancer insurance, hospital indemnity insurance, and more.
Key Benefits of Voluntary Benefits
1. Enhanced Financial Protection
One of the most significant advantages of voluntary benefits is the enhanced financial protection they offer. Traditional health insurance plans, especially those with high deductibles, may not cover all medical expenses. Voluntary benefits can fill these gaps, providing financial assistance when you need it most.
- Accident Insurance: Accidents happen unexpectedly, and the medical costs can be substantial. Accident insurance helps cover out-of-pocket expenses related to injuries, such as emergency room visits, ambulance rides, and follow-up treatments. This coverage can be particularly beneficial if you’re covered under a high-deductible health plan (HDHP), where initial out-of-pocket costs can be quite high.
- Cancer Insurance: A cancer diagnosis can be emotionally and financially devastating. Cancer insurance provides a lump-sum payment upon diagnosis, which can be used to cover medical expenses, treatment costs, and even everyday living expenses. This benefit can significantly reduce financial stress, allowing you to focus on recovery.
- Hospital Indemnity Insurance: Hospital stays can quickly become expensive, even with good health insurance. Hospital indemnity insurance pays a fixed amount for each day you’re hospitalized, helping to cover costs that your primary insurance may not fully address. This includes co-pays, deductibles, and even non-medical expenses like transportation and lodging for family members.
2. Complementary to Core Benefits
Voluntary benefits are designed to work seamlessly with your existing employee benefits package. They provide additional layers of protection that can be customized to meet your specific needs. By opting into voluntary benefits, you can create a more comprehensive and appealing benefits package for yourself without incurring significant additional costs.
3. Cost-Effective Options
Because voluntary benefits are offered through your employer at group rates, they are often more affordable than purchasing similar coverage individually. Payroll deductions also make it easy to manage payments without the hassle of separate bills.
4. Flexibility and Choice
One of the greatest advantages of voluntary benefits is the flexibility they offer. You can choose the specific benefits that best suit your needs and life circumstances. Whether you’re looking for additional protection for your family, planning for future healthcare costs, or seeking peace of mind, voluntary benefits provide options tailored to you.
Why Voluntary Benefits Are Especially Valuable Under High-Deductible Plans
High-deductible health plans (HDHPs) have become increasingly popular due to their lower monthly premiums. However, the trade-off is higher out-of-pocket costs when medical services are needed. Voluntary benefits can mitigate some of these costs, providing a safety net that makes HDHPs more manageable. Reducing Out-of-Pocket Expenses: Voluntary benefits like accident and hospital indemnity insurance can help cover the costs that HDHPs don’t fully pay for until the deductible is met. Providing Financial Security: In the event of a serious illness or injury, the financial assistance provided by voluntary benefits can prevent significant out-of-pocket spending, making it easier to manage medical bills and associated costs. Peace of Mind: Knowing you’re protected against high medical expenses can reduce stress and allow you to focus on what matters most—your health and well-being.
Conclusion
Voluntary benefits are a valuable addition to any employee benefits package. They offer enhanced financial protection, complement existing core benefits, and provide cost-effective, flexible options tailored to individual needs. For those covered under high-deductible health plans, voluntary benefits can be especially beneficial, reducing out-of-pocket expenses and providing critical financial security.
By understanding and leveraging these benefits, you can ensure that you and your family are well-protected, giving you peace of mind and allowing you to focus on thriving in your personal and professional life. Interested in learning more about how voluntary benefits can enhance your financial security and well-being? Contact your HR representative today to explore your options and make the most of your employee benefits package.
Common Cent$ Tips: Voluntary benefits are a cost effective way to help with your out of pocket medical expenses and one of the few ways you can mitigate costs related to a high deductible health plan. Cancer is one of the leading costs of bankruptcy due to the unexpected and mounting out of pocket expenses even with health insurance. For a small amount of money that generally includes a cash wellness benefit for an annual screening you can protect yourself and your family.
