What you need to know about voluntary benefits

Every job comes with a set of perks. Voluntary benefits are some optional perks that come with a job, which are typically employee-funded. These are usually paid with payroll deductions. Voluntary benefits may include a lot of attractive things such as health and life insurance, pet insurance, gym memberships, and concierge services.

How do voluntary benefits work?

These are supplemental employee benefits that span across healthcare, financial planning, physical health, etc. You can opt to pay for these benefits from your payroll if your employer is offering these. Even if you have to pay for the perks, most of the time these options are cheaper than what you can find in the open market. Employers use voluntary benefits to attract talent in tough job markets. According to Aon, a professional service catering to voluntary benefits, the number of employers offering voluntary benefits increased by 41% between 2021 and 2022.

What are some voluntary benefits?

Aon says that some of the most popular voluntary benefits include perks such as critical illness insurance, accident insurance, hospital indemnity, permanent life insurance, and student loan assistance. In some cases, the employer chooses to pay part of the costs for these benefits. Whatever the case, you will most likely have to pay less than what you would have to if you purchased any of these services personally. Some benefits can be paid for pre-tax, giving you significant cost savings. Some common pre-tax voluntary benefits are:

• Flexible Spending Accounts (FSAs)
• Health Savings Accounts (HSAs)
• Dental Insurance
• Vision insurance
• Cancer Insurance
• Accident insurance

Different types of voluntary benefits

There are no rules about the kind of voluntary benefits an employer can provide. As long as they adhere to labor and tax laws, employers can choose to provide almost any kind of benefit they prefer. Here are some of the most popular voluntary benefits:

Supplementary Health Insurance

These voluntary benefits cover more areas than traditional health insurance programs do. Some common supplementary health insurance benefits are:

• HSAs/FSAs
• Dental
• Vision
• Fertility coverage
• Critical illness
• Cancer
• Emergency hospital transportation
• Hospital indemnity

Financial and Security Benefits

These voluntary benefits will help you manage your financial health better. Some common financial and security voluntary benefits are:

• Life insurance
• Disability insurance (including short-term, long-term, and supplemental policies)
• Long-term care insurance
• Financial planning
• Tax preparation or planning
• Student loan repayment
• College tuition reimbursement
• ID theft
• Legal services

Family and Work-Life Balance Benefits

These are the voluntary benefits that help you care for your family and manage your personal responsibilities. Some common family and work-life balance voluntary benefits include:

• Adoption assistance
• Childcare
• Eldercare
• Pet insurance
• Gym memberships
• Concierge services

How can you find an employer that offers voluntary benefits?

Think these perks sound exciting? The next time you are on the job search, you can find an employer that provides these kinds of benefits. Here’s what you can do to find a great place like that:

• Pay attention to best employer lists – There will always be news stories and best employer lists about companies that walk the extra mile for their staff.
• Read employer reviews – Websites like Glassdoor give you access to thousands of employee reviews of different employers. These reviews will contain information about the compensation and benefits of the employers.
• Talk to your network – Career networking is one of the best things you can do to find your next great opportunity. Listen to what your colleagues, friends, family, and contacts have to say about employers who offer benefits to their workers.