Voluntary insurance isn't a new benefits option, but it is becoming more of an essential and innovative component of the employee-benefits package. These products include supplemental life, disability, critical illness, hospital, accident, cancer insurance and much more. They pay policyholders cash benefits when they are sick or injured, and are usually bought through an employee's workplace. Approximately 1 in 4 employers (26 percent) offer voluntary insurance to their workforce.
Results from the Work Forces studies show a greater proportion of employers offering critical illness, accident, cancer and hospital insurance than in previous years. These employers most often say they offer voluntary insurance “to satisfy employee need, interest or demand." With the cost of health insurance and out-of-pocket costs rising, it's no surprise that nearly 4 in 5 (79 percent) employees see a growing need for voluntary insurance today compared to last year.
Taking a closer look, employees enrolled in workplace voluntary insurance are more likely to say they're:
- Extremely or very satisfied in their jobs (78 percent) compared to those who aren't offered voluntary insurance by their employers (57 percent).
- Extremely or very satisfied with their overall benefits packages (75 percent) compared to those who aren't offered voluntary insurance by their employers (46 percent).
- Extremely or very prepared to pay out-of-pocket expenses not covered by major medical/health insurance (51 percent) compared to those who aren't offered voluntary insurance by their employers (21 percent).
Additionally, employers that offer voluntary accident insurance saw a reduction in workers' compensation claims. Since offering the product to their employees, 51 percent of employers noticed a decline and 74 percent say it was significant or very significant. These products are increasingly a low-cost option for employers to effectively round out their benefits packages.
Voluntary benefits are offered to the employees at no cost to the employers therefore making it that much more of an attraction to the Employers offering Voluntary benefits to their employees.