No employer enjoys telling workers that they'll have to pay more for health
insurance - it's easy to see the effect such news has on morale and loyalty.
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Download NowOne possible way to ease the blow is to offer additional benefits. But those
would cost the company.
Or would they?
Increasingly, employers are offering "voluntary" benefits, in which
employees pay the entire cost. It lets the employer expand the array of available
benefits to include such things as accidental death insurance, supplemental
life insurance and even pet insurance, according to the Arizona Republic.
You may be wondering: If the employee pays for the benefit, how much of a benefit
can it be? Employers who offer voluntary benefits answer by saying they can
use their group-purchasing power get better deals for workers. And there are
other advantages. When it comes to buying life insurance policies, for instance,
an insurer might waive physical exams if the employer is involved.
Nearly six out of 10 employees buy some kind of voluntary benefit, and more
employers are responding with even broader offerings as workers say they crave
them, according to MetLife's recent employee benefits trend study. The voluntary
benefits are especially popular among younger workers.
"With Gen Xers and baby boomers facing a triple threat to their financial
security - planning for retirement, saving for a child's education and caring
for an elderly parent - more employees appreciate the convenience and value
of purchasing insurance and investment products in the workplace," said
Rob Henrikson, president of MetLife's U.S. Insurance and Financial Services
Businesses.
Employers typically deduct the cost for many voluntary benefits directly from
employees' paychecks.
Terri Noll, a communications specialist for Intel, told the Republic that she
pays extra for supplemental life insurance through her company's voluntary benefits
program, and she thinks it saves her money. buying the insurance through her
company. It costs her about $12 a month compared with the estimated $1,200 she
pays annually for her other life insurance policy through her private insurance
agent.
"Why not sign up for the max at work, because it's so reasonable,"
Noll said. "When you get used to not bringing (that extra money) home,
you don't worry about it."
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