Voluntary Insurance

What Does Voluntary Insurance Mean?

Voluntary insurance is a workplace benefit that allows employees to purchase additional insurance coverage through plans set up by their employers. Common types of voluntary insurance include life, dental, disability, vision, and critical illness insurance.

These programs are considered voluntary because employees can choose whether or not to enroll. Employers may contribute to the premium payments, but it is not guaranteed.

Insuranceopedia Explains Voluntary Insurance

Voluntary insurance is a cost-effective workplace benefit for employers since they are not required to pay any of the premiums, resulting in minimal setup costs. Employees also benefit because these programs typically offer insurance coverage at lower premium rates than those available on the individual market. The reduced cost is achieved through group rates, as the insurance company provides coverage to a large pool of employees under the employer’s plan.