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What are the Different Types of Voluntary Benefits Plans?

Voluntary benefits plans are a boon for employees, offering a spectrum of options like life insurance, dental, vision, and disability coverage. These customizable perks cater to diverse needs, enhancing job satisfaction and loyalty. They're typically cost-effective, as they're often payroll-deducted. Wondering how these plans can fit into your life? Consider the possibilities and how they might elevate your financial security.
Jessica Ellis
Jessica Ellis
Jessica Ellis
Jessica Ellis

Voluntary benefits plans are various types of insurance and service benefits offered to members of an organization or employees of a company. The difference between voluntary benefits plans and regular benefits packages is that members or employees are not required to opt in to any of the services, but may do so at their own discretion. Plans are typically paid for through payroll deductions and may be offered in addition to or instead of regular benefits. Some of the different types of voluntary benefits include medical, dental, and vision insurance, accidental death or life insurance, savings plans and retirement accounts, and services such as legal assistance or therapy.

Some companies that offer a basic medical insurance package to employees may not have the means to offer a full health care package which includes other services beyond basic medical care. Some of the most popular voluntary benefits plans include options for dental and vision coverage. Medical coverage for specialized issues, such as end-of-life care, cancer insurance, or catastrophic injury coverage are also sometimes given as voluntary options. This allows a member or employee to purchase as much coverage as he or she wishes, often at a discounted rate.

Medical care for specialized issues is sometimes offered as a voluntary benefit.
Medical care for specialized issues is sometimes offered as a voluntary benefit.

Life insurance may be one of the most popular forms of voluntary benefits. Not all employees need or want life insurance, thus making it sometimes impractical to offer it as a mandatory benefit. Life insurance can help surviving family members pay for funeral expenses and continue to survive financially in the event of the death of the insured party. Many benefits plans also allow the coverage to extend to a spouse, domestic partner, or even other family members.

Certain added voluntary benefits can be paid for through payroll deductions.
Certain added voluntary benefits can be paid for through payroll deductions.

Some voluntary benefits plans can help save money for a goal such as college or retirement. These can be very useful for people who have difficulty managing their funds, as the contribution is deducted directly from payroll. Some employers or organizations will even agree to match a certain level of contributions per year as part of this deal, though not all make that guarantee. Voluntary savings plans such as IRAs can help grow a nest egg quickly through interest rates that are generally well above those of regular savings accounts.

Life insurance is a voluntary benefit that can help surviving family members pay for funeral expenses.
Life insurance is a voluntary benefit that can help surviving family members pay for funeral expenses.

Employers and organizations may choose to offer a variety of other voluntary benefits that can assist their members and workers. Some offer discounted access to services such as gyms, health clubs, or even cell phone service plans. Services such as discounted legal assistance or health services not covered by traditional medical plans, such as chiropractic services or psychotherapy, may also sometimes be available for below market rate.

Jessica Ellis
Jessica Ellis

With a B.A. in theater from UCLA and a graduate degree in screenwriting from the American Film Institute, Jessica is passionate about drama and film. She has many other interests, and enjoys learning and writing about a wide range of topics in her role as a SmartCapitalMind writer.

Learn more...
Jessica Ellis
Jessica Ellis

With a B.A. in theater from UCLA and a graduate degree in screenwriting from the American Film Institute, Jessica is passionate about drama and film. She has many other interests, and enjoys learning and writing about a wide range of topics in her role as a SmartCapitalMind writer.

Learn more...

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    • Medical care for specialized issues is sometimes offered as a voluntary benefit.
      By: Shakzu
      Medical care for specialized issues is sometimes offered as a voluntary benefit.
    • Certain added voluntary benefits can be paid for through payroll deductions.
      By: zimmytws
      Certain added voluntary benefits can be paid for through payroll deductions.
    • Life insurance is a voluntary benefit that can help surviving family members pay for funeral expenses.
      By: bramgino
      Life insurance is a voluntary benefit that can help surviving family members pay for funeral expenses.
    • Some employers offer cell phone service plans as part of their voluntary benefits packages.
      By: sanjagrujic
      Some employers offer cell phone service plans as part of their voluntary benefits packages.
    • Some voluntary benefits plans cover care not paid for by traditional insurance, such as chiropractic adjustments.
      By: Lisa F. Young
      Some voluntary benefits plans cover care not paid for by traditional insurance, such as chiropractic adjustments.
    • In some cases, psychotherapy and other health services not covered by traditional insurance are available at a discounted rate through a voluntary benefit plan.
      By: Tatyana Gladskih
      In some cases, psychotherapy and other health services not covered by traditional insurance are available at a discounted rate through a voluntary benefit plan.
    • Voluntary benefit plans may include dental insurance.
      By: HconQ
      Voluntary benefit plans may include dental insurance.