Voluntary benefits are insurance products that employers offer to employees, with the cost assumed by employees who elect the coverage. Typically, these packages include coverages such as dental, vision and disability. When employees obtain these products through their employer, the rates are lower than employees could get if they purchased them on their own. Many times they are not available on a non-group basis. Employers offer voluntary benefits because they allow companies to provide a better benefits package at no additional cost to them.
The types of Voluntary Benefits are:
Dental, Vision, Short Term Disability, Long Term Disability, Life Insurance
Dental insurance is designed to pay a portion of the costs associated with dental care. Generally dental offices have a fee schedule, or a list of prices for the dental services or procedures they offer. Dental insurance companies have similar fee schedules which is generally based on Usual and Customary dental services, an average of fees in your area. The fee schedule is commonly used as the transactional instrument between the insurance company, dental office and/or dentist, and the consumer.
Vision insurance and vision plans can lower your cost of eye care and prescription eyewear. Vision insurance is an optional health policy that entitles you to specific eye care and eyewear benefits defined in the policy.
Short Term Disability Insurance can replace a portion of your income during the initial weeks of a disabling illness or accident. Policies can cover from the first 6 months up to a year of a disability, providing coverage during the waiting period of most Long Term Disability Insurance plans.
Once the short-term benefits expire (generally after three to six months), long-term disability insurance pays a percentage of your salary, usually 50 to 60 percent, depending on the policy. The benefits last until you can go back to work or for the number of years stated in the policy.
Life Insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can also be included in the benefits.
Mainline President Vincent Reda is a Healthcare specialist with 40 years of experience in providing healthcare coverage to individuals and organizations.