According to the Employee Benefit Research Institute, 78% of employees said the benefit package offered by an employer is either “extremely” or “very” important in their decision of whether to accept a job offer. Yet at the same time, the cost of many benefits, particularly healthcare, is rising. To bridge the gap between what employers can afford and what their employees want, many companies are adding voluntary benefits to their overall compensation package.
Voluntary benefits are insurance packages that employees can choose to purchase through their employers at rates lower than those they could receive on their own. These benefits allow companies to offer a more robust benefits package at no cost to them while, at the same time, attracting and retaining quality employees.
These types of benefits are popular with employees for many reasons. Employees often trust their employers to offer them quality products from a reputable source. Often, the benefits are portable, so they can be continued after employment without increasing premiums. The policies can also be deducted directly from payroll and, at times, paid for with pre-tax dollars.
Among the many types of benefits available, these are some of the most popular:
- Short and long term disability insurance
- Critical illness coverage
- Life insurance
- Health and dental insurance
- Accident insurance
- Auto & home insurance
- Identity theft protection
Voluntary benefits can provide a win-win scenario. With these benefits, employers enable workers to protect their health and their savings without making a big impact on company budgets.
Richard Godshaw,VBS
Vice President – Group Benefits Division
rgodshaw@walshins.com