Voluntary Benefits: What They Are and Whether They're Worth It
Voluntary benefits are insurance plans an employer makes available and employees choose to buy, usually through payroll deduction. The business offers the benefit; the employee decides and pays.
What voluntary hospital indemnity means
The employer offers a hospital indemnity plan, and each employee decides whether to enroll. Employees who enroll pay the premium through payroll, and receive fixed cash benefits for covered hospital stays.
Why businesses offer them
They add value to a job without adding to the business's premium costs, and employees get access to coverage with simple enrollment through work.
What to watch for
Most group and voluntary plans have a minimum number of enrolled employees, and it varies by carrier and state.
Each plan has its own benefits, limits and waiting periods; read the plan details before enrolling.
Talk to a licensed agent: 954-306-1645Questions employers ask
Are voluntary benefits worth it?
For employees, they can be a convenient way to get coverage that fills gaps. For the business, they can be a low-cost way to strengthen its benefits.
Who pays for voluntary benefits?
Usually the employee, through payroll deduction. An employer can choose to contribute.
Is voluntary hospital indemnity taxable?
How premiums are paid (before or after tax) changes how premiums and benefits are taxed, so confirm the setup with your tax advisor.
For employers
- Employer benefits overview
- Group hospital indemnity, explained
- How to offer benefits as a small business
- Supplemental insurance for employees
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Benefits Council is a licensed insurance agency. Hospital indemnity insurance pays fixed cash benefits for covered hospital stays; it is not major medical health insurance and does not replace it. Products, eligibility, participation requirements and benefits vary by carrier and state, and are subject to underwriting. Not connected with or endorsed by the U.S. government or the federal Medicare program. We do not offer every plan available in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.