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