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1VOLUNTARY BENEFITS — A SIMPLE GUIDEVoluntary benetsA SIMPLE GUIDEColonialLife.com

VOLUNTARY BENEFITS — A SIMPLE GUIDEHOUSEHOLD BILLSCO-INSURANCEOR CO-PAYSTRAVEL EXPENSESREPLACING WAGES OR SAVINGSSometimes called supplemental insurance or employee-paid benets, voluntary benets are offered by employers through the workplace; allowing employees to choose to buy them in addition to the core employee benets, such as medical insurance, they may get as part of a benets package.Voluntary benets help cover expenses that may not be covered by traditional medical insurance. Now more than ever, employees are concerned with protecting themselves and their families from unforeseen events. Voluntary benets provide an affordable and adaptable way for companies to respond. They allow companies to offer a more comprehensive benets package and give employees more choices to customize their coverage based on their personal and family needs — and can grow with them as those needs change over time. Payment options are typically exible. To suit their budget, companies can choose whether voluntary employee benets are fully employee-funded or a shared expense between both the employer and employees. In light of recent events, employees are acutely aware of the need for both medical and nancial protections. They’re looking to ll the gaps in their medical benets and for assistance from their employers to do so. HOW THEY HELPVoluntary benets protect against the unexpected, helping to provide employees peace of mind that they can handle out-of-pocket expenses such as:What are voluntary benets?

VOLUNTARY BENEFITS — A SIMPLE GUIDEThere’s a wide range of voluntary insurance. Some examples include disability insurance, accident insurance, dental insurance or ‘softer’ benets that may include retail or ticket discounts, gym memberships or concierge services like collecting dry cleaning.ACCIDENT INSURANCEAccident insurance plans can help offset the unexpected medical expenses that may result from a covered accidental injury. Typically, they help cover some of the costs associated with initial care, surgery, transportation and lodging, as well as follow-up care.CANCER INSURANCECancer insurance offers benets to assist with out-of-pocket costs that may not be covered by your medical insurance, including expenses related to inpatient or outpatient treatment, surgery, travel and recovery care. Importantly, some plans cover annual cancer screenings to promote prevention and early diagnosis. CRITICAL ILLNESS INSURANCECritical illness insurance can complement major medical coverage by providing a lump-sum benet for an employee diagnosed with a covered critical illness, such as heart attack, stroke, coronary artery bypass surgery, end-stage renal failure or major organ transplant — among others. Benets are typically paid directly to the employee, so they can be used where they’re most needed.The most common voluntary benets allow employees to anticipate their current needs, plan for future goals, and protect them against life’s unexpected moments.What voluntary benets are available?

VOLUNTARY BENEFITS — A SIMPLE GUIDEDENTAL INSURANCEDental insurance can provide benets for both routine and more expensive dental procedures that are not covered by most health insurance plans. They typically include cleaning, llings, sealants, tooth removal, crowns and dentures – and may also provide benets for regular dental appointments.DISABILITY INSURANCEDisability insurance replaces a percentage of an employee’s income if they become unable to work as a result of a covered accident or sickness. Whether it’s an injury or infectious disease that creates the disability, employees are able to pay bills, buy groceries and focus on their recovery while out of work.HOSPITAL INDEMNITY INSURANCEHospital connement indemnity insurance provides a lump-sum benet to help with out-of-pocket costs related to a hospital stay. This may include outpatient surgery, diagnostic tests, doctor’s appointments and emergency room trips.LIFE INSURANCELife insurance pays out a lump sum to help provide nancial protection for an employee’s family members in the event of the employee’s death. The loss of a loved one is always dicult. Life insurance offers peace of mind as employees plan for the future and prepare for the unexpected. Most plans offer spouse and child coverage, as well.VISION INSURANCERegular eye exams help maintain healthy vision and are the rst line of defense in detecting more serious eye conditions, such as glaucoma, high blood pressure and diabetes. Vision insurance typically helps pay for eye exams, glasses and contact lenses. They may also offer discounts on treatments such as laser eye surgery or eyecare accessories.of employees said they are more likely to stay with their employer because of their benet program.In a survey conducted by Willis Towers Watson, benets were shown to be a key motivator for employees.

Over a third of employees who said they understand their benets very well said they felt highly cared about.Colonial Life, Consumer Survey, 2019. 1,505 U.S. consumers working full time responded to the survey from January 29-February 1, 2019.ADDITIONAL SERVICESFINANCIAL COUNSELINGFinancial counseling helps employees manage their finances. From retirement planning to student loan debt to tax advice, financial counseling helps employees enjoy life now and plan for the lives they want in the future.LEGAL ASSISTANCELegal assistance typically gives employees access to qualified attorneys at a reduced cost. Coverage usually applies to the most common personal legal matters including family, vehicle, real estate, civil lawsuits and wills.IDENTITY THEFT PROTECTIONIdentify theft protection often includes monitoring public records and alerting the employee to any fraudulent use of their personal details, including attempted loans and credit applications. It also covers the cost of repairing the person’s credit history. It typically does not cover any financial loss as the result of identity theft.of employers offer long-term disability according to the Society for Human Resource Management (SHRM)SHRM, Employee Benefits 2019, 2019.VOLUNTARY BENEFITS — A SIMPLE GUIDE

VOLUNTARY BENEFITS — A SIMPLE GUIDEBIG IMPACT AT LITTLE TO NO COSTVoluntary benets can make a big impact in employee’s lives when it matters most. What’s more, employers can offer voluntary benets at no direct cost (i.e. 100% employee-paid), leaving them with just the cost of administration.A WAY TO CONTROL RISING HEALTH CARE COSTSWith the cost of health care increasing, employers are starting to shy away from paying more to provide more comprehensive, “cover-it-all” health care benets. Instead, they are choosing less expensive coverage and offering workers a wider range of voluntary health benets to help ll the gaps.ATTRACTING AND KEEPING TOP TALENTEmployers are all looking for effective ways to retain their staff and recruit the best talent. This is particularly true for small businesses where key members of the staff can be crucial to the day to day operation and success of the company. With many employers now offering voluntary benets, those who are not put themselves at a distinct BENEFITS TO THE BUSINESSThe added benets of voluntary benetsdisadvantage when it comes to hiring, In fact, according to the Society for Human Resource Management (SHRM), 83% of employers offer accidental death and dismemberment insurance, 71% offer long-term disability, 61% offer short-term disability and 27% offer accident insurance.1 In a study by Willis Towers Watson, benets were shown to be a key motivator for employees. In the survey, 78% of workers would likely remain with their employer because of the benets it offers, up from 72% in 2016.2Voluntary benet plans help smaller businesses stand toe-to-toe with larger competitors in the competition for talent. They can also be a useful tool in employee retention: a benets package that an employee has chosen and that’s tailored to their changing needs is dicult to give up.

VOLUNTARY BENEFITS — A SIMPLE GUIDEBENEFITS TO EMPLOYEESColonial Life, Consumer Survey, 2019.CONFIDENCE IN THE BENEFITS PROVIDEDIt can be dicult for employees to nd time to research and understand their benets options. With voluntary benet plans offered at the workplace, employees know that their employer has vetted the carrier and considered the available benets. Voluntary insurance also pays nancial benets regardless of any other insurance coverage employees have in place — including policies available through government health care exchanges.Additionally, voluntary benets providers who offer counseling and enrollment services can assist employees in selecting the benets that make the most sense for them personally. That can even include guidance around their core benet elections, as well.FLEXIBILITY TO FIT TO THEIR LIVESThe wide range of options available allows employees to choose those voluntary benets that suit their personal circumstances and lifestyle, and allows them to adjust their protections over time as their needs change. Many voluntary benets are also portable, meaning that if an employee should need to switch jobs, they can continue to keep the coverage as long as they pay the premiums.BRIDGING GAPS IN OTHER BENEFITSVoluntary benets can complement core offerings such as life insurance or disability insurance. Even if an employer provides a core life insurance offering, employees can choose to up their life insurance coverage by adding voluntary life benets. Voluntary benets can also provide a nancial safety net to help employees with expenses that may not be covered by their core medical plan.AFFORDABLE PROTECTION FOR LIFE’S UNEXPECTED MOMENTSAs well as potentially being less expensive if purchased through their employer, voluntary employee benets can usually be deducted via payroll — meaning there’s no need to set up bank drafts or worry about missing premium payments. Plus, pre-tax dollars are often used to pay for many voluntary benets, meaning employees save even more money. And with most voluntary benets paid directly to the employee, they can use the money where they need it the most.In a recent survey, 69% of employees said they spent less than one hour considering their benets.

VOLUNTARY BENEFITS — A SIMPLE GUIDEWhat to look for in a voluntary benets partnerof employees surveyed by Colonial Life found 1-on-1 benets counseling sessions to be valuable.Colonial Life, Consumer Survey, 2019. 1,505 U.S. consumers working full-time responded to the survey from January 29-February 1.As you look to add voluntary benets to your offerings, it’s critical to look beyond just the protections themselves, and evaluate what services and assistance you need from a provider.Do your employees have a rm understanding of your available benets? Is enrollment a challenge for you every year? What benets administration and enrollment systems do you have in place? Finding a partner who can turn those challenges into opportunities for improvement is the key to getting the most out of your chosen approach.HELP WITH EDUCATING YOUR EMPLOYEES — AT NO DIRECT COSTYour benet plan is only as useful as your employees’ understanding of it. Communicating employee benets can seem challenging, but some voluntary benets providers offer support in the form of customized materials such as brochures and emails, group educational meetings and impactful 1-on-1 counseling sessions. These meetings typically include details about what each benet provides, a Q&A session and helping both the employer and employee with the actual enrollment process — usually at no direct cost to the employer. The 1-on-1 sessions are particularly important, as they allow employees to tailor coverage to meet their personal needs.While only 15% of employers offer individual meetings with HR or benets professional,93%

VOLUNTARY BENEFITS — A SIMPLE GUIDEVIRTUAL — With online video meetings, counselors can build personal connections that help your employees make decisions tailored for their lives, no matter where they’re located.IN-PERSON — Counselors can visit workplaces, when safe to do so, and meet with employees in person to understand their needs and answer questions. TELEPHONIC — Whether your team is spread over numerous locations, multiple shifts or working remotely, counselors can work around their schedules to speak with them about their individual needs.ONLINE — Self-enrollment with online tools allows your employees to enroll at their convenience.TECHNOLOGY POWERED BY PEOPLETechnology can help simplify the complicated, but it’s the people behind it that really help you nd opportunities to improve. Enrolling your employees and managing benets should be made easy with online access, seamless data transfers and integration into your HR systems. Look for a partner that has a exible set of tools and the willingness to answer your questions to make it work for you. ENROLLMENT SUPPORT TO MAKE THE PROCESS SIMPLEAdding benets does not create a more complicated enrollment. To the contrary, some voluntary benets providers offer enrollment services, including enrolling your employees in their core benets, as well. Options such as virtual enrollment allow benets counselors to connect with your employees regardless of where your teams are located – including remotely – what shifts they work and what languages they speak. Counseling and enrollment often happen in tandem, and counselors can meet with employees in a number of ways.

VOLUNTARY BENEFITS — A SIMPLE GUIDEBusting the myths —WHY SMALL BUSINESSES DON’T OFFER VOLUNTARY BENEFITSMYTH: Small businesses believe they can’t afford to pay for voluntary benets, even if they see the positives in offering them.Voluntary employee benets can be partially-funded or even fully-funded by the employees. That means that the company has complete control on how much they decide to spend and what options they choose to add.MYTH: Not enough employees to qualify.While it does depend on the carrier and the product, many voluntary benets are available to businesses with fewer than 10 employees, and some have no minimum requirements.MYTH: Administering a voluntary benets plan is costly and complex. Certain benets provide tax advantages and are tax-deductible. Some can be paid for through payroll deduction. Many qualied carriers will be pleased to help with education of employees and can provide easy enrollment and administration, usually at no direct cost — allowing the employer to get on with running their business.MYTH: Employees don’t value it.Not only do employees consider benets when looking for jobs, 79% of employers offer voluntary benets to enrich their existing core benets and offer more personalized options. If you’re not offering voluntary benets, your employees will nd a company that is.3TRUTHTRUTHTRUTHTRUTHMany small business owners are simply unaware that they are able to offer their staff this kind of benet. They assume they are too expensive, too complicated or not needed. In fact, none of those are true.

VOLUNTARY BENEFITS — A SIMPLE GUIDEWHO CAN GET VOLUNTARY BENEFITS?Is there a minimum number or percentage of employees that must participate in voluntary benets for them to be viable?Minimum participation requirements depend on several factors, such as the number of eligible employees and what products are offered. Typically, the minimum number would begin with three to ve employees.Can a contractor be added to voluntary benets?Typically, independent contractors cannot be covered under the employer’s policy. However, individual policies for some benets are available.Can non-prot organizations offer voluntary benets?Yes, non-prot and charitable organizations can offer voluntary benets to their employees.As a business owner, can I also receive coverage through the voluntary benets that I am offering to my employees?Yes. A business owner can apply for voluntary benets coverage — just like their employees would do.Are family members able to get voluntary benets?Yes. Many voluntary benets provide the ability to cover your spouse and eligible dependent children.Part-time workers can buy or receive voluntary benets as long as they work a minimum number of hours to meet the eligibility criteria for coverage.Frequently Asked QuestionsGot a question about voluntary benets? Here are some frequently asked questions to help you.

VOLUNTARY BENEFITS — A SIMPLE GUIDEADMINISTRATION AND COSTHow much administration is incurred by offering voluntary benets?If you nd a good carrier, very little. Many offer administrative services such as online billing and payments at little or no cost.Can employees add coverage throughout the year, or is this limited to an annual enrollment window?This decision is partly up to the employer. For benets paid on a pre-tax basis, changes are only allowed annually. Otherwise, an employer can decide how often they would like to make benets available.Can employees take their benets with them if they leave the company?Many carriers offer voluntary benets that are portable, meaning employees can take the coverage with them if they change jobs or retire – as long as the premiums continue to be paid.What are the tax implications of voluntary benets?Some voluntary benets can be deducted from paychecks before tax – offering savings for employees – whereas others must be paid forafter. Your accountant will be best suited to talk to you about the taxsavings and implications in offering voluntary benets.Even home-based or remote workers can receive voluntary benets if they meet the requirements of being full-time eligible employees.Voluntary benets are designed to be affordable for a wide range of incomes.Voluntary benets cost can vary based on the type of product, the age of the applicant, their use of tobacco and other factors. Are there age limits for certain voluntary benets?Each product will have its own unique age requirements. These limits are designed to be exible to allow the majority of employees actively at work the ability to apply for coverage.If you already have an existing medical condition can you get coverage?It depends on the type of product. Some products will require eligible employees to be medically underwritten before they are issued coverage. Other products offer guaranteed-issue coverage, meaning employees can get coverage without answering any medical questions. Certain products may have a pre-existing condition limitation, which means a certain period of time must pass before the person is covered. It’s important to understand any limitations or exclusions specic to the product.

VOLUNTARY BENEFITS — A SIMPLE GUIDEHEALTH CARE & VOLUNTARY BENEFITSHow do voluntary benets tie in to the Affordable Care Act (ACA)?Most voluntary products are considered “excepted benets” under the current ACA regulations, so are not impacted. A voluntary carrier experienced in benets communication and education can help educate your employees on their health options — including how this varies by state — and review their individual situation to identify any gaps they may want to ll with voluntary benets.Can voluntary benets be offered if health insurance is not?Yes. They can and often are. However, it’s important that your employees understand the coverage is limited and is not health insurance.Does an existing cafeteria plan need to be modied to allow for additional voluntary benet plan options?It depends if voluntary benets will be paid for with pre-tax or post-tax dollars. If paid via post-tax dollars, the plan would normally not need to be modied. If premium is paid pre-tax, the plan would need to be modied.HOW TO GET VOLUNTARY BENEFITSHow can I offer voluntary benets?There are a number of ways to get voluntary benets, such as through an employee benets broker or by talking to an insurance agent. What should I look for in a voluntary benets provider?It’s important that the carrier works with you (the employer) to help determine what best suits your overall employees’ needs as well as your business and budget. Many providers offer support services such as communication and enrollment of benets, on top of the benets themselves, which can really help employees make the most suitable selection. How can a small business with a multigenerational workforce offer a range of benets that suit all needs?The great thing about voluntary benets is that they allow you to offer a greater range of coverage to your workforce without impacting your budget. So, if you have employees of all different ages, they can pick and choose which benets are most benecial to them and their lifestyle.Health insurance is not a part of voluntary benets. However, supplemental health benets can help alleviate some of the out-of-pocket costs that major medical plans may not cover.Contact us at 713-575-3722 about voluntary benefits.

15VOLUNTARY BENEFITS — A SIMPLE GUIDEUnexpected, but never unpreparedIt’s impossible to anticipate what’s going to happen in the future. We’re all acutely aware that life can change dramatically. Having a plan and being prepared helps you, your company and your employees protect what’s most important. Finding a benets provider who combines the protections your employees need with expertise and compassion allows you to focus on what you do best, while your employees have the peace of mind needed to pursue their goals.That’s the power of voluntary benets.

16VOLUNTARY BENEFITS — A SIMPLE GUIDEColonial Life products are underwritten by Colonial Life & Accident Insurance Company, Columbia, SC. Colonial Life & Accident Insurance Company is not licensed in New York. In New York, insurance products are underwritten by The Paul Revere Life Insurance Company, Worcester, MA, and administered by Colonial Life & Accident Insurance Company.©2020 Colonial Life & Accident Insurance Company. All rights reserved.Colonial Life is a registered trademark and marketing brand of Colonial Life & Accident Insurance Company.6-20 | CL0010-3ColonialLife.com1. SHRM, Employee Benets 2019, 2019.2. Willis Towers Watson, Employer and employee satisfaction with group benet marketplaces, 2018.3. Willis Towers Watson, 2018 Emerging Trends: Voluntary Benets and Services Industry, 2018.