Voluntary Benefits

Voluntary benefits are additional insurance offerings that employees can choose to purchase to complement their core employee benefits package. These benefits are typically paid for by employees through payroll deductions.

Core benefits are typically provided by employers and include health insurance, retirement plans, and paid time off. Voluntary benefits are optional, and employees can choose to enroll in them or not based on their preferences.

Many employers offer a range of voluntary benefits, allowing employees to choose the options that best suit their needs. You can often customize your voluntary benefits package to align with your personal situation.

The enrollment periods for voluntary benefits can vary from company to company. There are typically specific enrollment periods, such as during the annual benefits open enrollment period or when you first start your job. Some companies may also allow mid-year enrollment for certain life events.

Portable benefits are those you can take with you if you change jobs or leave your current employer. Some voluntary benefits, like individual life insurance or certain supplemental policies, may be portable, while others tied to your employment may not be.

Like core benefits, some voluntary benefits may allow changes during the annual benefits open enrollment period. However, the flexibility to make changes throughout the year may be limited, so it's important to review your selections carefully.

The tax treatment of voluntary benefits can vary based on the benefit type and local tax laws. In general, benefits paid for by employees with post-tax dollars are not taxable, while those paid for with pre-tax dollars may have different tax implications.

In most cases, you can drop voluntary benefits during the benefits open enrollment period or when experiencing a qualifying life event, such as marriage, divorce, or the birth of a child. Be sure to check with your employer's HR department for specific rules.