Voluntary Benefits: What Are They, and Are They Worth It?

Once you’ve picked your major medical health insurance and set your 401(k) contributions, there’s often one more section of your benefits package to consider: voluntary or supplemental insurance plans.

These aren’t required, but they can offer targeted support that fits your life and risk profile. And since they’re offered through your employer, they’re usually more affordable than if you bought them on your own.  This type of insurance can be significant income protection as the benefits are paid directly to you in cash.

Let’s walk through the most common types—and how to decide which (if any) are right for you.

Accident Insurance.

• What it covers: Injuries like fractures, sprains, burns, or concussions caused by accidents.
• Why it matters: Pays you cash to help with ER visits, copays, or time off work after an accident—especially helpful with high-deductible health plans.

Critical Illness Insurance.

• What it covers: A lump sum if you’re diagnosed with a major illness like cancer, stroke, or heart attack.
• Why it matters: Even with health insurance, serious illness can bring major out-of-pocket costs and lost income.

Hospital Indemnity Insurance.

• What it covers: Fixed cash payments if you’re hospitalized.
• Why it matters: Helps cover deductibles, overnight stays, or additional caregiving costs—costs your primary insurance might not fully cover.

Legal Plans.

• What it covers: Access to attorneys for wills, estate planning, tenant issues, and legal document reviews.
• Why it matters: Legal help can be expensive and intimidating—these plans give you support for common life events.

Identity Theft Protection.

• What it covers: Alerts, credit monitoring, and recovery services if your identity is stolen.
• Why it matters: Identity theft is on the rise, and having a team to help fix things can save you months of stress and financial risk.

Wellness Plans.

• What it covers: Preventive health services like biometric screenings, flu shots, and sometimes gym memberships or smoking cessation programs.
• Why it matters: These benefits reward proactive health habits—some even offer cash incentives for completing wellness activities or screenings.

Preston’s Practical Advice.

Voluntary benefits aren’t essential—but they can be a powerful layer of protection.  Think of them as affordable back-up plans tailored to your risks and lifestyle.  The difference between these plans and major medical plans is voluntary insurance puts cash in your pocket directly (for covered events) and major medical pays the doctors.  This is a powerful benefit if you have limited savings to cover you if an unfortunate event occurs.

My approach:

• If an accident, diagnosis, or disruption would strain your budget, strongly consider supplemental coverages.
• If your budget is tight, or you have ample savings, prioritize long-term disability and health insurance first, then add what fits.

Final Thought.

Voluntary benefits let you personalize your protection. They’re not for everyone—but they’re often a small cost for big peace of mind.

At Dealing With Debt, we believe wellness isn’t just about money—it’s about confidence, protection, and planning for the unexpected. We’re here to help you reduce financial stress and build a more secure future—one smart choice (and budget) at a time.