Common Voluntary Benefits
| Benefit | What It Covers | Best For |
|---|---|---|
| Supplemental health | Gaps in major medical coverage | Employees with high deductibles |
| Critical illness | Lump sum payment for serious diagnoses (cancer, heart attack, stroke) | Employees with family history of serious illness |
| Accident insurance | Benefits for accidental injuries | Active employees; families with children |
| Hospital indemnity | Daily benefit for hospital stays | Employees with high deductibles or coinsurance |
| Short-term disability | Income replacement for short-term disability | Employees without employer-paid STD |
| Legal services | Access to legal advice and representation | Employees with legal needs (wills, real estate) |
Voluntary Benefits and HDHPs
Voluntary benefits are particularly valuable for employees enrolled in HDHPs. A hospital indemnity plan that pays $200/day for hospital stays can offset a significant portion of the HDHP deductible. Critical illness insurance that pays a $10,000 lump sum for a cancer diagnosis can cover the entire HDHP out-of-pocket maximum.
Designing the Voluntary Benefits Menu
Pro Tip
The most effective voluntary benefits menus are curated — not comprehensive. Offering 15 voluntary benefit options creates decision fatigue and reduces enrollment. Offer 3–5 carefully selected options that address the specific gaps in your core benefits package. For HDHP employers, hospital indemnity and critical illness are the highest-value voluntary benefits.