Different Types of Voluntary Benefits

Common types of voluntary benefits include accident insurance, critical illness coverage, short-term disability insurance, hospital indemnity plans, cancer coverage, and more. Employers may elect to also offer: 

• Health and wellness benefits (e.g. dental, vision, and wellness programs) 
• Financial benefits (e.g. retirement plans, life insurance, and disability insurance) 
• Work-life balance benefits (e.g. flexible work arrangements and employee assistance programs) 
• Personal development benefits (e.g. professional development and education assistance) 

There are some tried-and-true benefits that have become standard offerings. These traditional voluntary benefits: 

• Healthcare coverage, such as vision and dental insurance 
• Life insurance 
• Accident insurance 
• Short and long-term disability insurance 
• Retirement plans, such as 401(k)s and IRAs 
• Flexible spending accounts (FSAs) 
• Maternity/paternity leave plans 
• Employee assistance programs (EAPs) 

Conversely, as world events (such as COVID-19) and the ages of those in the workplace change and widen, so do the interest in other, more non-traditional types of benefits that are offered. Following are some examples of non-traditional voluntary benefits some employers are choosing to offer: 

• Mental health benefits 
• Flexible work hours 
• Work from home/remote work 
• Caregiver support 
• Emergency financial support 
• Pet Insurance 
• Commuter benefits 
• Child-care subsidies 
• Family planning 
• Tuition assistance 
• Home and auto Insurance 
• Legal services 
• Identity theft protection 
• Financial planning services 
• Gym membership discounts 
• Continuing education 
• Professional development 
• Wellness programs 
• Cultural experiences (concerts, events) 

Ultimately, the voluntary benefits you choose to offer will vary, depending on your industry and workforce preferences. It is important to note that for many job-seekers, especially Millennials and Gen Z, the absence of these perks can impact saying ‘yes’ to offers of employment. 

According to a study by Unum, 56% of Millennials and 60% of Gen Z say that benefits are an important factor when considering a job offer. And they’re not afraid to pay for them – which also supports their importance. In fact, the same Unum study found that 62% of Gen Z and 59% of Millennials said that they would be willing to pay more for benefits the better meets their needs. 

Offering voluntary benefits that meet the needs and preferences of potential employees (not just Gen Z and Millennials) can be a key factor in attracting and retaining top talent. Employers who don’t offer these benefits may struggle to compete in the job market and risk losing talented employees to competitors who do offer these benefits. 

However, the most common voluntary benefits that most every employer offers their employees are: 

• Disability insurance: Provides a cash benefit if an employee is unable to work due to an illness or injury. 
• Accident insurance: Provides cash benefits in the event of a serious accident, such as broken bones or hospitalization 
• Vision and dental insurance: Can help cover costs associated with vision care and dental visits, such as annual exams, eyeglasses, contacts and braces.