Although many organizations protect employees through a traditional group health plan, business owners can consider other coverage types. Voluntary benefits are valuable to the workplace depending on the number of employees that receive coverage, the business owner’s budget, and the business size. Read on to get a better understanding between traditional insurance and voluntary benefits.
What is Traditional Insurance? Or Voluntary Benefits?
A traditional health insurance policy helps you pay for some of your basic health care costs. In addition, you are responsible for paying the copayments, premiums, and coinsurance. Note that the amount of your copay will change depending on the service. In contrast, voluntary benefits are additional insurance offerings your staff voluntarily select to add to their workplace benefits package. They can include life insurance, dental and vision insurance, short- and long-term disability insurance, and hospital indemnity.
Similarities between Voluntary Benefits and Traditional Insurance
Traditional coverage and voluntary benefits are valuable to employees. Their similarities are:
- They are both customizable because individuals can choose the coverage options that meet their needs, budget, and family size.
- Both insurance types cover dependents such as spouses or children for an additional charge.
- Traditional and voluntary benefits can cover various areas such as vision, dental, life, and disability.
Differences between Voluntary Benefits and Traditional Insurance
Even though voluntary benefits and traditional insurance can provide coverage in various circumstances, there are a few differences between them:
- The employer sponsors the voluntary benefits. The employer selects which benefits he or she will offer and at what coverage levels. Also, this gives employees less flexibility than with a traditional plan.
- The employee pays for traditional insurance. Some employers will cover a part of voluntary benefits for their employees, but the employee pays for the entire cost with conventional insurance coverage.
Understanding the similarities and differences between traditional and voluntary coverage is crucial to seeking a suitable package for a business to provide competitive employee benefits.
Get in Your Voluntary, Supplemental, and Health Insurance Policies with the MWE Partnership!
Are you a business looking to provide your employees with essential voluntary benefits? If so, look no further than The MWE Partnership. When you choose The MWE Partnership, you get experienced service and comprehensive voluntary benefit options that will meet all your employees’ needs. With over 17 years of experience, The MWE Partnership is your go-to provider for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, contact us today! We encourage you to like our Facebook page and follow us on Twitter and LinkedIn for the latest voluntary benefit news!