Voluntary Insurance

The ABC Insurance Trust voluntary benefit program allows you to offer your employees more benefit choices without impacting your employee benefits budget. The ABC Insurance Trust features fully insured plans from top rated insurance carriers and will help you choose a program that is right for your company. 

Features of Voluntary Programs

Voluntary employee benefit plans differ from traditional group plans in two key areas:

  1. Contributions

  2. - Unlike traditional group benefits (such as medical, dental & disability) that require the employer to pay some portion of the premium, voluntary programs require no employer contributions. Voluntary plans are sponsored by the employer, but the premiums are paid 100% by the employee through the convenience of payroll deduction.

    - The employees may pay their premiums (for certain products) on a pre-tax basis through an IRS approved "Section 125" plan. The result is a tax savings for the employee as well as the employer!

  3. Enrollment Percentage

  4. -Traditional group benefits require high levels of participation, typically 75%, but voluntary programs generally require only 20% of the eligible employees to enroll, and plans from some carriers have no participation requirement at all.

    Advantages of Voluntary Benefits
    • No Employer Premium Costs - Voluntary benefits are a great way to provide employees with the benefits they want and desire with little or no premium cost to the company.
    • Enhanced Benefit Program - Employees or prospective employees have access to a greater array of benefits that they can chose from, based on their needs.
    • Employee Retention - Companies with strong employee benefits packages have lower employee turnover and find it easier to attract prospects looking for employment. This is critical when the employment pool is reduced due to high levels of employment.
    • Group Rates - By utilizing the purchasing power of your group, the employees get access to benefits at low group rates.
    • Favorable Underwriting - Disability coverage and life insurance are extremely difficult to find on an individual basis if the insured has a less than favorable medical history. These products have simplified underwriting requirements or in many cases are guaranteed issue (no health questions!).
    • Promotes Goodwill - ABC members around the country are beginning to offer voluntary benefits.