Flexible and voluntary benefits

Flexible and voluntary benefit arrangements can help employers to offer a range of benefits valued by their employees, which may also reflect the organisation's culture. An arrangement could include group protection benefits alongside other benefits such as childcare vouchers and gym membership.

The employer or the trustees they've chosen will always be the policyholder. The role of the policyholder is to decide:

  • which products to include in the flexible / voluntary benefit scheme
  • the minimum level of each benefit to provide (we call this core benefit)
  • the options an employee has for making changes to their benefits

Advantages of flexible and voluntary benefits.

Advantages
Choice
  • Employees choose how much they want of each benefit, within the rules of the scheme.
  • As they move through their ‘life cycle’ the reward package can evolve and remain relevant.
Range Employers can offer a wide range of benefits to appeal to the diverse needs of their staff.
Engagement Employees have a greater awareness of the benefit package being provided by their employer and its value.
Costs
  • National Insurance (NI) savings (for employee and employer) if salary sacrifice is used.
  • Helps the employer control costs because:
    • the amount they spend can effectively be 'ring fenced'.
    • less is spent on benefits employees don't want.
Integration Very useful if employers are merging because it can be an easier way to integrate reward packages.

For more information, please see PDF file: A guide to flexible and voluntary benefits PDF size: 270KB  .

Our products pages help provide an overview of the cover we can provide, how we assess claims and the options available.

We also include access to a comprehensive range of support called Worklife Solutions to help employers maintain a healthy workforce. Worklife Solutions provides a range of information, advice and services to help employees deal with issues and events in their everyday life.

We'll continue to provide cover and pay any valid claims as long as premiums are paid and the policy terms are met. There are some circumstances where we won't provide cover. You can find out more in our technical guides.