An unplanned emergency can result in a financial disaster for an employee without insurance. To lure top talent and give peace of mind to current employees, employers who cannot offer full insurance coverage offer voluntary insurance benefits to their employees. These policies come in a variety of forms and fulfill the needs of both employers and new and existing employees.
Voluntary insurance policies are accessible to employees at little to no cost to the employer. Employees are not mandated to take part in the programs. They enjoy a group discount based on the number of employees in their group. Employers can also offer voluntary insurance as an alternative to a company’s in-house insurance plan.
Voluntary insurance is an option for employees whose company does not offer insurance or who would like better coverage than what’s provided by an employer’s insurance carrier of choice. These insurance packages benefit employers by providing a way for them to offer incentives for quality recruits to join their workforce.
Typically, employers allow employees to participate in their company’s voluntary insurance plan after a brief probationary period. Insurers generally accept payment through payroll deduction. Employers may choose to offer benefits on a pretax basis. Employees can choose plans based on their individual needs. Voluntary benefit packages have the advantage of little to no underwriting requirements. Employees qualify for their company’s plan solely because of their employment status.
Voluntary insurance policies provide financial protection to employees during unforeseen crises. These protections can cover family members as well. The policies provide ways to decrease health care costs by including provisions for checkups with health care maintenance providers. As financial instruments, voluntary insurance policies can help employees save money for future events. If the savings deductions are pretax, employees barely notice a difference in their salaries due to tax savings. Some employers opt to make matching contributions, accelerating an employee’s savings growth.