What to Consider When Considering Voluntary Benefits
As an employee, you might have the opportunity to complement your standard benefits package with additional benefits that are not underwritten by your employer in the way that your health benefits are.
These supplemental – or “voluntary” – benefits can include anything from life insurance to pet insurance, and from critical illness coverage to identity theft protection. And even if your employer isn’t footing a part of the cost, they likely are able to offer these benefits with group discounts that make them less expensive than if you were to purchase them on your own.
So, does that mean you should scoop up these benefits? Maybe, maybe not. Here are some things to consider when deciding whether or not to sign up for them.
Do you need it? That might sound like an obvious question, but, then again, if a deal sounds good, you might jump at it without thinking it through. For example, if you’re being offered supplemental life insurance at a good rate, it might seem like you should take it. However, if you already have a policy with solid coverage, you might not need the extra policy. Similarly, while identity theft protection is a smart choice, you might get it through a credit card or credit bureau. The voluntary benefits might be great … but you should look before you leap.
Can you afford it? Even a great deal is a bad deal if you don’t have the money to pay for it. The caution here is to make sure you don’t take so many “small” voluntary benefits that your paycheck gets eaten up by monthly deductions.
Is it really the best deal? While group discounts often do result in tremendous savings, that doesn’t mean you can’t find a better deal somewhere else. If you’re considering supplemental life insurance, for example, get comparable price quotes from other sources.
Are there other factors to consider? Sometimes cost is not the sole determining factor in these decisions. For example, if you have a health problem that could make it difficult to get life insurance, a group plan through your employer might be a good choice because it typically requires less health underwriting than a purchased policy.
Do you understand it? Make sure you fully grasp what your coverage is. For example, if you purchase a disability plan through your work, when will it kick in if you’re disabled, and how does the policy define “disability”? Know such things before signing up.
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