Employees typically pay for voluntary benefits through payroll deductions. The most common voluntary benefits programs are Accident Insurance, Critical Illness Insurance, Hospital Indemnity Insurance, Legal Insurance, Id Theft, and Electronic Product Insurance. Voluntary benefits are appealing because they allow employees to select benefits based on their own individual financial situation and personal needs. Captive reinsured group coverage allows employees to purchase robust coverage at rates they could not otherwise have access to.
Hospital Indemnity
Insurance is an insurance plan you can select in addition to your health insurance plan sponsored by your employer. You pay a monthly premium through payroll deductions, just like other benefits. If you are admitted to the hospital, you receive a fixed benefit amount directly to you to help cover the expenses. Depending on your plan, you could use the benefits for your deductible, coinsurance, transportation, medications, rehabilitation or home care costs, and some expenses incurred as you recover. Plan benefits are paid according to a fixed schedule of benefits for covered hospital confinements.
Critical Illness
insurance provides additional coverage for medical conditions like heart attacks, strokes, or cancer. These medical conditions often come with significant healthcare costs and missed work time. Critical illness insurance can pay for costs not covered by traditional insurance. The money can also be used for nonmedical costs related to the illness, including transportation, childcare, and so on. Typically, the insured will receive a lump sum to cover those costs. Plan benefits are paid a lump sum upon diagnosis of a covered critical condition. Benefit amounts are guaranteed to issue up to $30K.
Accident Insurance
Covers qualifying injuries, including a broken limb, limb loss, burns, lacerations, or paralysis. While health insurance companies pay your provider or facility, accident insurance pays you directly. Accident insurance is considered supplemental insurance and is most helpful when combined with a major medical plan. Accident coverage can be used to pay for expenses not covered by your medical plans, such as copayments and deductibles. It will also cover nonmedical costs like mortgage or rent, utility bills, and other daily expenses. Plan benefits are paid according to a fixed schedule of benefits for covered treatments and injuries.
Voluntary Life
Insurance provides a cash benefit to a beneficiary upon the insured’s death. Employees can purchase as much or little coverage as they would like.
Voluntary Disability
Insurance provides financial protection for an employee who suffers an illness or injury and can’t work and earn a paycheck.
Identity Theft
Coverage is designed to cover some of the costs related to identity theft. It reimburses victims for money spent reclaiming their financial identities and repairing their credit reports. Those costs can range from phone bills to legal help. Policies often provide specialists who can help victims through identity restoration. Identity Theft is the fastest-growing voluntary benefit.
Pet Insurance
Covers accidents, illnesses, cancer, emergency care, genetic and hereditary conditions, breed-specific conditions, and alternative care.
Home Warranty
Coverage is a yearly service contract that covers the repair and replacement of essential household appliances and home system components that inevitably break down over time.
Electronic Product
Insurance covers accidental damage or mechanical breakdown for electronic devices, including cell phones, laptops, tablets, computers, TVs, gaming units, etc.