Why voluntary plans make sense

What are voluntary plans?

Voluntary plans are dental, vision and term life benefits offered at group rates. They are called “voluntary” because the employer does not cover the full cost of these plans. Instead employees are given the choice to "voluntarily" cover them at their own expense.

Employers use voluntary plans to offer employees dental, vision, and life insurance at group rates, which are lower than what employees would pay if they purchased these plans on an individual basis.

What are the benefits to the employee and to the employer?

1 They can fill in the gaps of a limited employee benefits package. If benefits are currently limited to health and dental plans, adding additional insurance would help address other employee needs. Some health plans may not provide coverage for eye exams or eyewear. A voluntary vision plan would fill this need and help preserve eyesight. Employees can purchase more life insurance if a voluntary plan is offered alongside an employer-sponsored life plan. 2 Use pre-tax dollars to pay for these plans. The cost of voluntary plans can be conveniently deducted from paychecks with pre-tax dollars, which can help employees save on their purchase. 3 Offers desirable benefits and gives employees a reason to stick around. Employees value benefits like dental and vision. In a 2002 study*, 80 percent of Americans indicated dental benefits "are very important/somewhat important" for hiring employers to provide employees. Employers who offer a variety of benefits look more attractive to current employees and to new hires, and this can help encourage company loyalty by increasing employee satisfaction. * Taylor Nelson/Sofres Intersearch survey, May 2002.

4 Encourages preventive care. Employees who have dental benefits get dental care more compared to those who do not have dental insurance. According to a 2007 National American Dental Plan (“NADP”) Consumer Survey, people who do not have dental coverage are 2.5 times more likely not to visit their dentist. Bad oral hygiene can be very costly as oral infection has been tied to cardiovascular disease, diabetes and others.  Vision plans are an important prevention tool as well. Signs of disease like high blood pressure and diabetes may be caught early in an eye exams. Early detection from an eye or oral exam can help lower a company’s medical costs in the long term. 5 Protection for families during the event of a death or serious injury. Group term life insurance provides an inexpensive way to have money available during the event of a death. Most group term policies include Accidental Death and Dismemberment, which provides a benefit in the event of a serious injury or death due to an accident. By having both benefits, $15,000 or even $30,000, depending on what is selected by the employer, can help financially protect a family from a diminished household income... and provide a peace of mind.

The more employees enroll, the more the group saves.

BEST Life is currently offering special rates for voluntary dental and vision plans. Companies with more than 60% of their employees enrolled in a voluntary dental or vision plan will receive the same rates and waiting periods offered to employer-sponsored plans. Offer is valid for July through December 2011 effective dates.