What Are Voluntary Benefits and Why Do Maryland Employers Need Them? 

With healthcare costs climbing, more employers across Frederick and the surrounding region are turning to voluntary benefits plans as a smart, low-cost way to round out their benefits package.

What Are Voluntary Benefits?

Voluntary benefits are supplemental insurance products that employees can elect to purchase, usually through payroll deduction, alongside their core group health plan. Unlike medical coverage, these plans are typically employee-paid, meaning the employer facilitates access without bearing the premium cost.

Common voluntary benefit categories include:

• Supplemental life insurance can provide additional coverage beyond a base group life policy.
• Disability insurance can provide income protection if an employee is unable to work due to illness or injury.
• Accident insurance can provide cash benefits for injuries from covered accidents.
• Critical illness insurance can provide a lump-sum payout upon diagnosis of conditions like cancer, heart attack or stroke.
• Legal plans can provide access to affordable legal services for everyday needs like wills and contracts.

The No-cost Recruitment and Retention Advantage

Voluntary benefits let you expand your total rewards package without expanding your benefits budget. Because employees pay the premiums, the employer’s direct cost is minimal or nonexistent, while the perceived value to the workforce is significant.

In a competitive hiring environment, that perceived value matters. Job seekers increasingly weigh the full benefits picture, not just salary and health insurance, when deciding between offers. A robust voluntary benefits menu signals that an employer is thinking about employees’ financial security holistically, which can be a meaningful differentiator for small and mid-sized businesses.

Retention benefits from the same logic. Employees who have enrolled in supplemental coverage through their employer, especially benefits tied to income protection or family financial security, have one more reason to stay put.

What to Look for in a Voluntary Benefits Partner

Rolling out voluntary benefits requires a deep understanding of plan design, enrollment logistics, carrier administration and how these benefits could interact with a company’s existing group plans.

This is where Lyceum’s track record sets us apart in the Frederick market. With 40 years of advising Maryland employers, Lyceum has longstanding relationships with the carriers that dominate the voluntary benefits space, including Colonial Life, Aflac and Unum. That combination of tenure and carrier access means our team can design a voluntary benefits strategy suited to your workforce, manage enrollment smoothly and provide the kind of ongoing service that keeps participation strong year after year.

Contact us if you are considering adding to or refreshing your voluntary benefits offerings.