Voluntary life insurance, also known as voluntary group life insurance or worksite life insurance, is a type of life insurance that is offered to employees by their employer as a voluntary benefit. It allows employees to purchase life insurance coverage for themselves, as well as for their spouse and children, through payroll deductions.
This type of insurance is typically offered as a group policy, which means that the employer pays a portion of the premiums and the employees pay the rest. The employer may also provide a basic coverage level for employees at no cost to them, and employees can then choose to purchase additional coverage at their own cost.
The benefits of voluntary life insurance include that it is usually less expensive than individual policies, and the underwriting process is less stringent than for individual policies. Additionally, it is convenient for employees as they can pay for their coverage via payroll deductions, making it easy to budget and manage.
Employers typically offer Voluntary Life insurance as a way to attract and retain employees, as well as to provide a benefit that employees may not be able to obtain on their own.
It’s important for employees to be aware of the cost, coverage and details of the policy, and to review their needs and budget before enrolling in voluntary life insurance. It’s also advisable to consult with an insurance agent or financial advisor to understand your options and find a policy that fits your specific needs.