Skip to main content

Understanding Voluntary Benefits

You know the importance of having health care coverage and a 401(k), but are you taking advantage of all the benefits your organization offers? Voluntary benefits are additional benefit options offered through the company. Unlike traditional benefits like health coverage, employees are responsible for paying most or all of the cost of these voluntary options.

What’s the Advantage?
You may wonder–if you’re responsible to pay, then why elect any voluntary benefits? There are several advantages.

Lower Price

If the benefit in question is something you are planning to purchase for yourself regardless, then it is probably more costeffective to purchase through your organization. The group rate HBS can secure is generally lower than what you’d pay buying individually from an insurance company. 

Convenience

When you elect a voluntary benefit option through our open enrollment, your premium is paid through convenient payroll deductions just like your other benefits (and you receive the same benefit of pre-tax payroll deductions). Plus, you can skip the hassle of shopping around to find and purchase a plan – simply elect what you need during enrollment time. 

Unlike traditional benefits such as health coverage, employees are responsible for paying most or all of the cost of voluntary benefits

Protect Yourself and Your Family

Many of these types of insurance may seem unnecessary, but they are designed to protect you in the event of an unexpected illness, accident, death or other event. For instance, you may be skeptical about needing disability insurance, but consider if you could afford to be disabled and without a paycheck for weeks or months, plus having medical bills to pay? Paying a small premium now can help protect you financially. 

Common Types

There are a variety of voluntary benefit options; some of the common ones include: 
  • Life Insurance – employees can typically elect up to a certain amount without needing to go through medical underwriting
  • Vision Insurance – typically includes free annual eye exam and discounts on glasses and contacts
  • Dental Insurance – generally covers preventive services and offers a discount on other treatments
  • Long-term Care Insurance – covers the care people need when they have lost the ability to perform certain daily activities (care that may not be covered under Medicare or Medicaid)
  • Short-term Disability – covers a percentage of lost pay due to time away from work because of a disability, generally up to three or six months 
  • Long-term Disability – covers care needed over a longer period of time, for injuries that could affect someone for years 
  • Accidental Death & Dismemberment – coverage in case an employee dies in an accident or loses a limb, vision or hearing. 
If you have any questions about voluntary benefits, or would like to talk to an employee benefits consultant, please get in touch by email or by calling (800) 388-1963.

Popular posts from this blog

COVID-19: Retirement and Benefit Plan Resources

As the COVID-19 crisis continues to unfold, we are closely monitoring news and updates from top sources. We’ll be updating this section as new developments unfold. Here are several key articles and links to help plan sponsors and administrators navigate the COVID-19 impact to retirement and benefit plans: Retirement Plans 4 Key CARES Act Provisions for Retirement Plan Sponsors Markets React to Coronavirus   Important Considerations for Retirement Plan Sponsors during the Coronavirus Pandemic In Fed We Trust Participant Education Services: Timely Help from a Safe Distance CRDs 100% Taxable for New York State and Local Income Tax Purposes in 2020 IRS Permits Remote Notarization of Participant Elections   Employee Benefits CARES Act Expands Health Coverage Rules Understanding the Historic $2 Trillion Stimulus Package Employee Compensation and Benefits During Closures and Furloughs DOL Clarifies Exemptions to Coronavirus Paid Leave Laws Small Business Exemption to

HBS named as a Top 100 Retirement Plan Adviser, again!

The 2021 PLANADVISER Top 100 Retirement Plan Advisers list is out—and HANYS Benefit Services is on it!  PLANADVISER’s Top 100 Retirement Plan Advisers is an annual list of noteworthy retirement plan specialists, based on number of plans and total assets under advisement — including sponsors of defined contribution, defined benefit and nonqualified plans. “Each recognition by PLANADVISER reaffirms our commitment to our clients.” said James J. Kelley, president, HBS. “HBS conducts business in a manner that is in the best interests of our clients, with an ultimate goal of assuring our clients’ employees are ready for retirement. We are grateful to our clients for allowing us that opportunity.” HBS is categorized by PLANADVISER as a large team, having met this year’s eligibility standards of $5 billion or more retirement plan assets under advisement. HBS was previously named to PLANADVISER’s list in 2019, 2017 and 2016.  HBS is a full-service, independent consulting firm, registered invest

Coronavirus-related distributions 100% taxable for New York state and local income tax purposes in 2020

The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27. Under the Act, participants affected by the coronavirus may be able to take distributions in 2020 of up to $100,000 from an employer-sponsored retirement plan or an IRA. Although allowing these distributions from a qualified retirement plan is optional, we have seen that a number of employers have chosen to amend their plans to permit such distributions. The Act provides that coronavirus-related distributions will not be subject to the mandatory 20% withholding nor the 10% early withdrawal penalty (for those younger than 59½) that would otherwise apply.