Definition

• Voluntary life insurance plans enable the employee to buy additional life insurance; however, the employee is responsible for paying the premium.
  
  

Standard Features

• Voluntary life insurance typically has a minimum guaranteed issue amount, for which the employee does not have to answer any medical questions to buy coverage up the guaranteed issue amount. A limit is usually placed on the maximum.
  
  

Optional Features

• Some voluntary life insurance plans offer Accidental Death and Dismemberment (AD&D) coverage, spousal and child coverage, and accelerated benefits to assist a terminally ill employee with financial and personal needs.
  
  

Payroll Deduction

• Once the employee's voluntary life insurance coverage begins, the employer deducts the premium from the employee's paycheck each pay date.
  
  

Criteria

• The guidelines for voluntary insurance plans vary. Requirements for obtaining the plan may be different for each insurance company.