Have You Volunteered For Coverage?

Voluntary benefits, sometimes referred to as Worksite benefits, have been around for many years.  They benefit the employer by enhancing the portfolio of benefits that it provides for employees.  They benefit the employee by providing an affordable portfolio of protection that would not otherwise be available.  Therefore, voluntary benefits provide a win-win from an employee/employer relationship perspective.

Examples of voluntary benefits include Critical Illness Insurance, Cancer Insurance (Sometimes combined with Critical Illness), Accident Insurance, Long-Term Care Insurance, Disability Income Protection, Life Insurance and more.  Sometimes, voluntary benefits are used to enhance existing coverage, especially when the existing (primary) coverage does not adequately indemnify an employee for the expense or loss.  Voluntary benefits are typically portable, thereby allowing a departing employee to continue coverage even after employment has terminated.

There are several alternatives for making voluntary benefits available to employees. One approach allows a sales representative from a specific insurance company access to individual employees on an ongoing basis.  In this approach, the employees make the decision to discuss the applicable benefits on an individual basis with an insurance company representative.  While these discussions frequently occur on company time, the company is not involved in any of the process.  Additionally, due to the competitive nature of the world that we live in, many times, the Human Resource Manager is hounded by these representatives for access to the employees. 

An alternative approach, and one that is reinforced by many successful organizations, involves a careful analysis of voluntary benefit offerings, based upon the specific needs and wants of the employee population and in coordination with the type of coverage already in place.  It involves a strategic meeting between the company management and the Benefits Specialist to determine what type of coverage is necessary and appropriate.  The Benefits Specialist has the capability of accessing many different products across many companies.  Additionally, in this approach, the company controls the conversation with its employees and enhances the overall portfolio of benefits provided to employees. This assists in recruiting, retaining and satisfying employees, while still providing freedom of choice for the employee.

Have you considered the power of voluntary benefits?