Flexible coverage, employee-driven choice
A voluntary group insurance plan is a type of employee benefit where coverage is offered through the workplace, but the employee pays the full premium cost. While employers typically facilitate access to these plans, participation is optional—hence the term “voluntary.”
These plans are designed to complement employer-sponsored benefits and give employees the freedom to select additional coverage that fits their personal needs and lifestyle.
How it works
Employers partner with an insurance provider to offer a variety of voluntary insurance products. Employees can choose to enroll in some, all, or none of the options. If they do enroll, premiums are usually paid through payroll deductions, often at lower group rates compared to individual plans.
Types of voluntary group insurance
Common types of voluntary coverage include:
- Term life or whole life insurance
- Accident insurance
- Critical illness insurance
- Cancer insurance
- Short-term or long-term disability
- Dental and vision insurance
- Hospital indemnity coverage
Legal or identity theft protection
Key features
- 100% employee-paid Employers offer access to the plan, but employees pay the full cost of any coverage they select.
- Group pricing advantages Even though employees cover the premiums, they benefit from group rates that are often more affordable than purchasing individual policies on their own.
- Flexible and customizable Employees can choose the type and amount of coverage that best meets their needs
- Easy enrollment and payroll deduction Once enrolled, premiums are deducted automatically from the employee’s paycheck.
Benefits to employees
- Affordable access: Lower group rates help employees secure coverage they might not be able to afford individually.
- Convenience: Payroll deductions eliminate the need for monthly payments or billing management.
- Expanded protection: Employees can supplement employer-provided coverage with options tailored to their personal circumstances.
- Portable options: Some plans allow coverage to continue if the employee leaves the company (with direct billing).
Benefits to employers
- No direct cost: Since employees pay the full premium, employers can expand benefits offerings without increasing benefits expenses.
- Increased satisfaction: Offering a range of coverage options shows that the company values employee well-being.
- Recruitment and retention: A robust benefits menu can attract and retain top talent in a competitive market.