Understanding Voluntary Benefits
You know the importance of having health care coverage and a 401(k), but are you taking advantage of all the other benefits your employer offers?
Voluntary benefits are additional benefit options offered through the company. Unlike traditional benefits like health coverage, employees are responsible for paying most or all of the cost of voluntary options.
What’s the Advantage?
You may wonder–if you’re responsible to pay, then why elect to choose any voluntary benefits? There are several advantages.
Lower Price
If the benefit is something you were planning to purchase anyway, then it is probably more cost-effective to purchase it through your employer. The group rate your employer can secure is generally lower than what you’d pay buying individually from an insurance company.
Convenience
When you elect a voluntary benefit option during open enrollment, your premium is paid through convenient payroll deductions just like your other benefits (and you receive the same benefit of pre-tax payroll deductions). Additionally, you’ll skip the time and hassle of shopping around to find and purchase a plan—simply elect what you need during enrollment time.
Protect Yourself and Your Family
Many of these types of insurance may seem unnecessary, but they are designed to protect you in the event of an unexpected illness, accident, death or other unexpected event. For instance, you may be skeptical about needing disability insurance, but consider if you could afford to be disabled and without a paycheck for weeks or months, plus having medical bills to pay. Paying a small premium now can help protect you and your family financially if the unexpected happens.
Common Types
There are a variety of voluntary benefit options; some of the common ones include:
- Life Insurance—employees can typically elect up to a certain amount without needing to go through medical underwriting
- Vision Insurance—typically includes free annual eye exam and discounts on glasses and contacts
- Dental Insurance—generally covers preventive services and offers a discount on other treatments
- Long-term Care Insurance—covers the care people need when they have lost the ability to perform certain daily activities (care that may not be covered under Medicare or Medicaid)
- Short-term Disability—covers a percentage of lost pay due to time away from work because of a disability, generally up to three or six months
- Long-term Disability—covers care needed over a longer period of time, for injuries that could affect someone for years
- Accidental Death & Dismemberment—coverage in case an employee dies in an accident or loses a limb, vision or hearing
What Voluntary Benefits do you Need?
Deciding on what voluntary benefits you and your family need is an individual decision. Contact us today to learn how CoyleKiley can help you maximize your voluntary benefit program.
The content of this News Brief is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. © 2024 Zywave, Inc. All rights reserved.
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