Voluntary Life Insurance
Definition - What does Voluntary Life Insurance mean?
Voluntary life insurance is a workplace benefit that employers can set up for their employees. Through this program, an employee can buy life insurance coverage that would pay their heirs a death benefit if the employee died. The program is voluntary because employees choose whether they want coverage or not. The employer doesn't pay any of the insurance cost so employees need to decide if the life insurance is worth the cost.
Insuranceopedia explains Voluntary Life Insurance
Voluntary life insurance programs can come with several attractive benefits. Some programs let employees sign up for a guaranteed minimum amount of coverage without going through a health exam. Employees in good health can qualify for more coverage if they want.
Also, many voluntary life insurance programs give employees the option of keeping their insurance coverage after they leave the job. Finally, the voluntary life insurance could be sold at a discount compared to regular life insurance since the insurance company is selling to a group of employees.