Voluntary Government Insurance

Definition - What does Voluntary Government Insurance mean?

Voluntary government insurance is non-mandatory insurance provided by the government. These programs are typically for people who have low incomes or those have fallen on difficult financial times and provide various benefits to help them maintain a certain standard of living. Voluntary government insurance differs from normal insurance in that it does not require the individual to pay directly. Instead, the funding comes from taxes, so workers indirectly pay for it, whether they take advantage of it or not.

Insuranceopedia explains Voluntary Government Insurance

Examples of voluntary government insurance include food stamps and unemployment compensation. Both of these programs allow people who qualify to receive financial aid; however, neither is mandatory. People who are qualified can elect to apply to receive assistance or not. Many people do choose to receive the assistance because it can really help them in times of need.

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