What are voluntary benefits?

Voluntary benefits are optional insurance products—like life, accident, or pet coverage—offered by employers at group rates. Employees in Colorado and Utah can customize protection to fit their unique needs for less than buying coverage on their own.

Your trusted Colorado and Utah insurance advisor, providing personalized, expert guidance on employee benefits.

Complete Guide to Voluntary Benefits

Why This Question Matters for Colorado and Utah Residents

Understanding voluntary benefits is crucial because local employers increasingly offer these options to help attract and retain talent and provide a financial safety net tailored to individual needs. In regions like Colorado and Utah, where out-of-pocket medical costs and injury risks from active lifestyles are high, these benefits can make a measurable difference.

Rising Costs of Care: With Colorado family health premiums averaging $25,572/year and Utah trending similarly, voluntary benefits provide affordable supplemental protection against local risks.
Customization and Choice: Employees in Fort Collins, Denver, Salt Lake City, and beyond can choose coverage—from accident plans to pet insurance—that fits their lives without paying full retail prices.
Regional Needs: Mountain sports injuries in Colorado or veterinary expenses in Utah are common, making access to targeted, voluntary coverages all the more valuable.

What Most People Get Wrong

Many employees assume voluntary benefits are unnecessary or that only health insurance matters. In reality, accident and illness can impose thousands in unexpected costs—just one day in the hospital averages $2,800 in Colorado.

Another misconception: all group voluntary benefits are a bargain. Some plans have limitations or exclusions, and not every employer offers the same access or rates to all staff, especially part-time or seasonal workers.

The Complete Picture

Voluntary benefits are additional insurance products you can purchase through your employer, outside of the core medical or dental package. They cover specific needs—such as supplemental life, accident, critical illness, disability, or even legal services and pet insurance. Employers leverage their group purchasing power to negotiate better prices for employees, meaning you often pay less than if you purchased similar coverage individually.

Participation rates in Colorado and Utah are growing: In 2024, nearly half (49%) of Coloradans had some form of employer-sponsored coverage, and more employers are adding voluntary benefits due to cost pressures and worker demand. Choosing wisely can ease the burden of high-deductible plans, improve financial security, and fill critical gaps specific to local lifestyles and risks. But always review the plan's coverage details, limits, and exclusions before enrolling, and seek advice if you're comparing options.

Making the Right Decision for Colorado and Utah Residents

Question 1: Which voluntary benefits best address my family's risks?

Start by evaluating what is most likely to impact your household, considering regional risk factors:

Do you participate in activities like skiing, hiking, or mountain biking that have higher accident potential?
Do you have dependents, pets, or financial obligations that would be affected by sudden illness or injury?

Question 2: How does group pricing compare to buying coverage individually?

Ask your HR team for rate comparisons and sample benefits. Many Colorado and Utah employers negotiate group rates that can be 15-30% lower than retail plans. Review deductibles, coverage limits, and exclusion lists to ensure the plan meets your needs.

Question 3: Will my employer's voluntary benefit options evolve if my life changes?

Your needs may change—for instance, moving from single to family, or bringing home a new pet. Inquire if you can adjust or add benefits during life events or open enrollment, and if regional factors (like adventure sports) are considered in coverage choices.

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Real World Examples

Accident Insurance on the Slopes (Colorado)

Background: Sarah, a Fort Collins tech employee who regularly skis at Eldora Mountain, worried about the financial impact of a ski injury not fully covered by her high-deductible health plan.

Coverage: Voluntary group accident insurance offered through her employer for supplemental accident and hospital coverage.

Monthly Premium: $11/month ($132/year)

The Incident: After breaking her wrist while skiing on Harmony Road’s weekend shuttle trip, Sarah needed surgery and a night in the hospital. Her health plan didn’t fully cover the $3,500 in out-of-pocket expenses.

Total Claim Cost: $3,500 (deductible, coinsurance, and therapy sessions)

Sarah's Cost: $0 out-of-pocket for the uncovered portion; her accident plan paid directly to her after she filed the claim.

"Without the accident coverage my employer offered, I’d be paying off this injury all year. The group rate made it affordable, even on my budget."

Pet Insurance for City Living (Utah)

Background: Brandon, a Salt Lake City resident working for a downtown restaurant group, wanted protection for his golden retriever after an unexpected $1,200 vet bill the previous year.

Coverage: Voluntary pet insurance through employer, covering accidents, illness, and some preventive care.

Monthly Premium: $24/month ($288/year)

The Incident: When Max swallowed a sock and needed surgery at a vet clinic near Sugar House Park, Brandon’s plan covered 80% of the $2,000 bill.

Total Claim Cost: $2,000 (surgery and follow-up)

Brandon's Cost: $400 out-of-pocket (after insurance) instead of $2,000, saving $1,600.

"I almost didn’t sign up thinking I’d never need it. But in Salt Lake, vet costs add up fast—this coverage saved us big time."

Voluntary Life Insurance for Growing Families (Colorado/Utah)

Background: Julie, based in Grand Junction, Colorado, had her second child and wanted extra security in case something happened to her.

Coverage: Voluntary group term life insurance bought through her employer; $100,000 extra coverage on top of the basic employer-paid plan.

Monthly Premium: $18/month ($216/year)

The Incident: Julie suffered a complication during childbirth and needed extended hospitalization; while she recovered, her family’s financial security was protected by her life coverage’s living benefit feature.

Total Claim Cost: Policy advanced $15,000 under a living benefit rider for major illness, supplementing lost income during recovery.

Julie's Cost: $18/month for peace of mind and tangible, needed financial support at a critical time.

"We chose extra life insurance through work because it was easy and affordable. When we actually needed it, the money arrived in time to cover bills without extra stress."

Avoid These Common Mistakes

Mistake #1: Skipping Voluntary Benefits Because "It Won’t Happen To Me"

What People Do: Many Colorado and Utah employees skip accident, critical illness, or supplemental life insurance, believing they won’t need extra protection.

Why It Seems Logical: Healthy, active workers often feel their standard benefits are enough—until an unexpected injury or illness strikes.

The Real Cost: A single hospital visit in Colorado averages $2,800. Without voluntary accident or illness coverage, out-of-pocket expenses can quickly build, risking savings or even leading to debt.

Smart Alternative: Evaluate group voluntary coverage at work—affordable premiums can avert steep surprise costs. FoCoIns experts can help review what’s really covered and spot the gaps most often missed.

Mistake #2: Focusing Only on Premiums, Not Coverage Details

What People Do: Choosing the lowest-cost voluntary option without understanding coverage limits, exclusions, or waiting periods.

Why It Seems Logical: It’s natural to want to pay as little as possible. But regional plans might have exclusions for certain sports or medical conditions common in Colorado or Utah.

The Real Cost: Saving $5/month could lead to hundreds or thousands in uncovered expenses (for example, no coverage for mountain biking or adventure sports injuries, which are higher-risk locally).

Smart Alternative: Ask for a benefit summary or guidance from your HR team or a FoCoIns advisor before enrolling. Understand each plan’s exclusions and ensure your most likely risks are protected.

Mistake #3: Assuming Employer-Selected Options Fit Every Employee

What People Do: Enrolling in whichever options the employer offers without considering if there are better alternatives (or assuming all employees are eligible for all benefits).

Why It Seems Logical: It’s easier to enroll in what’s presented, but employers may choose plans based on group demographics or cost, not individual needs.

The Real Cost: You might miss out on vital coverage (e.g., pet insurance, disability) or overpay for benefits you don’t need, wasting $100–$300/year or more based on local market premiums.

Smart Alternative: Review all available voluntary options during open enrollment and consult with a licensed advisor for a personalized fit, especially if you have specific health, family, or financial needs unique to Colorado or Utah.

FAQs On The Same Topic

Find answers to your most pressing insurance questions right here.

What are flexible spending accounts (FSAs)?

Flexible Spending Accounts (FSAs) let you set aside pre-tax income for healthcare or dependent care expenses, but most funds must be used within the plan year. FSAs can significantly reduce your taxable income for Colorado and Utah residents with out-of-pocket costs.

How do employer matching contributions work in 401(k)s?

Employers in Colorado and Utah typically match employee 401(k) contributions up to 3–6% of your salary—offering valuable, tax-advantaged retirement savings. Not contributing enough to get the full match means missing out on free money from your employer.

What is short-term disability insurance?

Short-term disability insurance provides partial income replacement if you can't work due to a covered illness or injury, typically for 3-6 months. It's essential protection for financial stability during recovery.

Are part-time employees eligible for benefits?

Part-time employee benefit eligibility depends on your employer’s plan, hours worked, and the size of your organization. In Colorado and Utah, the ACA typically requires benefits for those working 30+ hours weekly at large employers, but many small businesses set their own policies—so always ask HR about your specific options.

What is an HSA and how does it work?

An HSA is a tax-advantaged savings account you can use for qualified medical expenses if you’re enrolled in a high-deductible health plan (HDHP). In Colorado and Utah, HSAs help you save pre-tax dollars for healthcare costs and can lower your taxable income.

How does COBRA continuation coverage work?

COBRA lets you temporarily keep your employer health insurance after leaving a job, but you'll pay the full premium plus a small administrative fee. It's a lifeline for coverage continuity but can be costly—compare all options before enrolling.

What's the difference between HMO and PPO plans?

HMOs require a primary care doctor and referrals for specialists, often costing less. PPOs offer greater provider flexibility, no specialist referrals, but usually come with higher costs.

How do health insurance deductibles work?

A deductible is what you pay out of pocket for covered health services before insurance begins to pay. In Colorado and Utah, higher deductible plans often mean lower monthly premiums, but could mean more upfront costs when care is needed.

What are the essential employee benefits typically offered?

Core employee benefits typically include health, dental, vision, life, disability insurance, and retirement plans such as 401(k)s, with Colorado and Utah employers contributing on average 69% toward family health premiums for competitive recruitment and retention.

How does insurance work?

Insurance works by sharing financial risk among many people. For employee benefits in Colorado and Utah, your business pays premiums so your team is protected against unexpected medical expenses and other covered events.