- Supplemental Health Insurance: As healthcare costs continue to rise, more employees are looking for ways to manage unexpected expenses like deductibles, copays, coinsurance, and other out-of-pocket costs during accidents, serious illnesses, or hospital stays. Accident, critical illness, and hospital indemnity insurance can help fill these gaps. Unlike major medical insurance, these supplemental plans are not subject to many federal health and benefits regulations, making them a more affordable option. By offering additional coverage, these policies provide employees with peace of mind and financial stability when faced with health challenges.
- Student Loan Repayment Assistance: One in four U.S. adults under 40 have student loan debt, according to the Pew Research Center. Educational assistance programs, traditionally used for expenses like tuition and supplies, can now also cover principal and interest on qualified education loans, with payments made directly to the lender or the employee. This benefit, allowing up to $5,250 in tax-free student loan repayment annually, expires on December 31, 2025.
- Term Life Insurance: Achieving financial security is a priority for many Americans, including being prepared for the loss of a loved one. While 80% of Americans worry about their financial readiness in the event of an unexpected death, nearly 30% still do not have life insurance, according to Guardian. Many organizations offer base-level group term life insurance, partially or fully funded by the employer, with the option for employees to purchase additional coverage. Since employers have already vetted and selected policy options, group life insurance can be an easy choice for employees.
- Cybersecurity and Identity Theft Protection: With increasing cyberattacks, data breaches, and identity theft incidents, employees are more aware of digital risks. Protecting personal and financial information has become a priority. Additionally, the shift to remote and hybrid work environments has introduced new security challenges, as personal devices and home networks are often less secure than corporate systems.
- Legal Plans and Services: Legal plan voluntary benefits are highly relevant because employees often require legal assistance for personal matters. These plans alleviate stress, reduce work disruptions, and offer support for various situations, including estate planning, real estate, and traffic issues.
Voluntary Benefits: The Missing Piece of Your Compensation Puzzle
The Rise of Voluntary Benefits As healthcare costs increase, so does the demand for voluntary benefits. These optional benefits allow employees to select and pay for additional perks to meet their individual needs, especially in today’s diverse workforce. They’re also a valuable supplement to health insurance, particularly as healthcare expenses rise and affordability becomes a challenge. Trending Voluntary Benefits Here are some voluntary benefits that are currently popular or expected to gain traction this year:
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