WORK-SITE VOLUNTARY PROGRAMS

Today's employer is finding it more and more difficult to continue to provide employees with a comprehensive benefits program. Costs are rising at a prohibitive rate, and the temptation to drop various ancillary coverage is becoming all too attractive. Many employers have already been forced to cut programs, increase employee contributions, and/or reduce benefit levels.

One way to maintain a complete benefits portfolio is to combine individual voluntary product offerings with group-paid core programs. Voluntary programs also provide employees with the ability to customize their benefits package to their individual needs.

Individual Products Provided at Group Rates

Voluntary programs are comprised of individual insurance products that can be offered to employees during the group enrollment process. The products are selected to complement the group-paid program. They allow employees to add to their group benefits or enhance group coverage levels.

Voluntary products are generally less expensive to the employee, or include more comprehensive benefits, than individual coverage available outside of the group voluntary setting. Examples of insurance products that are popular as voluntary offerings are universal and group term life, short and long term disability, critical illness, dental and vision. Some employers also include pre-paid legal, pet insurance, long term care, etc.

No Cost to the Employer

Voluntary programs can be completely funded by the employee or included as part of a flexible spending program (FSA). They are usually paid for through employee payroll deduction-just like contributions toward group-paid programs.

They are a component of a complete benefits package. Voluntary programs were designed to allow employers to direct their benefits expenditures toward core programs like group medical, etc., and still make ancillary coverage available to employees at a reduced group rate.