What’s the difference between regular employer-sponsored group benefits and individual voluntary benefits?

Ø     “Employer-sponsored” group benefits are those “classic” plans where the contract for coverage is between the employer and the insurance carrier.  The employer is responsible for paying the total premium; any required employee contributions are withheld from the employee’s pay.

Ø     “Individual voluntary” benefits differ from employer-sponsored plans in one major way—there is generally no employer contribution.  A company (usually the employer) uses its purchasing power to reduce plan costs to eligible persons.  Covered persons are responsible for paying the total premium.  Often, an employer will, as a courtesy, withhold the premiums from a covered employee’s pay to reduce administrative costs for that covered employee.

Ø     Still unsure?  For answers to your questions, contact us.  At FBS, we want to help.