Employees want benefits that reflect their lives and unique needs. One employee may be focused on protecting their income. Another may be planning for future care needs, managing pet expenses, or looking for added financial protection after an unexpected diagnosis.
Voluntary benefits give employers a practical way to offer more choice without adding significant cost to the company. These benefits are typically employee-paid and offered through the workplace, giving employees access to options they may not seek out—or qualify for as easily—on their own.
What are voluntary benefits?
Voluntary benefits are products and services offered through an employer-sponsored benefits program. While employees generally pay the full premium, they can often access group rates, simplified enrollment, and payroll deduction through the workplace.
Most voluntary benefits share a few common characteristics:
- Employee-paid
- Offered through an employer
- Enrolled through an insurance company or enrollment partner
- Paid through automatic payroll deductions
For employers, voluntary benefits can strengthen an overall benefits strategy without creating the same budget pressure as employer-paid benefits. For employees, they provide more flexibility to choose coverage that fits their needs, budget, and stage of life.
Common voluntary benefit options
Voluntary benefits can include a wide range of health, financial protection, and lifestyle-related options. Availability will vary by employer, insurance company, state, and plan design, but common examples include:
- Permanent life insurance
- Disability income insurance
- Accidental death and dismemberment insurance
- Supplemental health insurance
- Long-term care insurance
- Retiree medical insurance
- Dental and vision insurance
- Auto and homeowners insurance
- Prepaid legal services
- Pet health insurance
- Identity theft protection
- Computer purchase programs
- Adoption assistance
The right mix depends on your workforce. A company with employees in different income levels, family structures, and life stages may benefit from offering a broader range of options employees can select based on their own priorities.
Why employers offer voluntary benefits
Rising benefit costs continue to put pressure on employers. Voluntary benefits can help expand the value of your benefits program while giving your organization more control over expenses.
For employers, voluntary benefits may help:
- Add value without significantly increasing benefit spend
- Support recruiting and retention efforts
- Fill gaps when core benefits change or costs shift
- Give employees more choices without requiring one-size-fits-all solutions
- Support broader work-life and financial wellness goals
- Keep implementation and ongoing administration manageable, depending on the program
They can also help employers create a benefits package that feels more complete. When employees see options that reflect their everyday needs, they may better understand and appreciate the total value of the benefits available to them.
Why employees value voluntary benefits
Employees often appreciate voluntary benefits because they provide choice. Instead of paying for benefits they may not need, employees can select the products that make sense for their personal situation.
For employees, voluntary benefits may offer:
- Access to a broader range of benefit options
- The ability to choose coverage based on individual or family needs
- Convenient payroll deduction
- Group pricing or workplace access
- Simplified enrollment
- Portable coverage in some cases
- Underwriting that may be more flexible than buying coverage independently
For many employees, convenience matters. Being able to review options during enrollment, ask questions, and pay through payroll deduction can make it easier to take action.
A stronger benefits program starts with choice
Voluntary benefits are not a replacement for a strong core benefits program. They are a way to add flexibility, fill potential gaps, and give employees more control over how they protect themselves and their families.
When designed thoughtfully, voluntary benefits can help employers offer a more well-rounded program while keeping costs manageable. They can also help employees feel more supported—at work, at home, and in the moments when extra protection matters most.
To learn more about voluntary benefits and how they may fit into your overall benefits strategy, contact your Leavitt Group insurance advisor.
