Voluntary benefits can give employees greater financial security
By Allstate Benefits
Last updated: January 0001
Most of us plan ahead for major life events such as vacations or weddings, but we are far less likely to plan ahead for unforeseeable illnesses and injuries that could disrupt our daily lives. Do you have enough money saved up to cover an emergency such as a broken appliance, car troubles, the loss of your job, or a death in the family?
A recent Bankrate 2025 Annual Emergency Savings Report found that many Americans are unprepared for a $1,000 emergency expense¹:
- 33% of U.S. adults have more credit card debt than emergency savings
- 35% of U.S. adults are focused on both paying off their credit card debt and increasing their emergency savings at the same time
- 59% of U.S. adults are uncomfortable with the amount of money they have in their emergency savings
When an emergency involves an unexpected injury or illness diagnosis, voluntary benefits can serve as the financial safety net that many Americans need to protect their savings and get back on their feet.
Voluntary benefits can protect employees
Voluntary benefits pay cash benefits for covered diagnoses and treatments in addition to any other coverage that may be in place. Because voluntary benefits pay the insured directly (unlike core health insurance, which pays the healthcare provider), the insured can use these benefits however they choose, including paying for bills or daily living expenses. Plus, since voluntary insurance is offered to employees through their employer, coverage is available at affordable group rates.
What are the top financial priorities for Americans?²
42% want to reduce debt
21% want to save money for a major purchase such as a car, house, or vacation
14% want to plan for retirement
These insurance products can help alleviate the financial stress caused by a sudden critical illness diagnosis or accident. It's not always easy to plan for the unexpected, but having the right coverage in place can make a big difference in protecting your savings and your financial future.
Key highlights of voluntary benefits:
- Affordable rates that are only available through the workplace
- Convenient payroll deductions
- Compatibility with any other medical coverage the employee has in place
- Coverage for employees and their family members
- Portable coverage that may be continued after an employer ends coverage or the employee leaves their job
Critical Illness
48,000+ organ transplants were performed in 2024.³
Critical Illness Insurance provides benefits to covered employees and their dependents when they are diagnosed with an eligible critical illness or condition, which may include a heart attack, stroke, major organ transplant, end stage renal failure or coronary artery bypass surgery.
When you are diagnosed with a serious illness or condition, you should be focused on your recovery, not worrying about how your medical expenses are going to affect your savings.
The cost of critical illness
Core health insurance doesn’t always cover all of the expenses associated with a critical illness, and it also doesn’t pay for personal expenses that can add up during recovery. It may feel like the world has stopped after a diagnosis, but bills don’t. Anyone impacted by a critical illness will need to continue to pay their daily living expenses, support their family, and accommodate any new lifestyle changes as they recover and receive treatment—which could be ongoing and last for weeks or even months.
Common expenses associated with a major organ transplant⁴:
Medical
- Pre-transplant testing and evaluation
- Surgery
- Major medical insurance deductibles
- Insurance copays
- Fees for the medical team and lab tests
- Fees for the recovery of the donated organ
- Follow-up care and testing
- Additional hospital stays for any complications that may occur
- Anti-rejection drugs and other medication (which can cost more than $2,500 per month)
- Rehabilitation
Non-Medical
- Food, lodging, and communication costs for you and your family
- Transportation to and from the transplant center or hospital
- Child care or family care during recovery
- Lost wages if you or your caretaker have to spend time away from work
How it works
With Critical Illness Insurance, covered employees submit a claim after a diagnosis and benefits are paid for eligible diagnoses and procedures based on a pre-determined schedule of benefits. Benefits are paid whether further medical treatment is received or not. The cash benefits can be used to pay for anything from hospital bills to groceries—there are no restrictions.
Accident Insurance
There are approximately 62 million injuries reported in the U.S. each year.⁵
Accident Insurance pays cash benefits when a covered employee or their dependents suffer an accidental injury, which may include dislocations, fractures, burns, or lacerations. This coverage can help you enjoy greater financial peace of mind by providing you with cash benefits to help cover out-of-pocket expenses for medical treatments and follow-up care after an accident.
The cost of accidents
Even with health insurance, accidents can be costly. Many medical plans only cover a portion of the costs. Accident Insurance provides an extra layer of protection so you can concentrate on getting better.
Whether from sports, travel, or a DIY home repair, accidents can happen when we least expect them, and the unforeseen costs can add up quickly. Accident insurance typically pays benefits for ambulance transportation, treatment, surgery, physical therapy, and more—and the money can be used to cover expenses like copayments, deductibles, and even monthly expenses like gas, utilities and mortgage payments.
How it works
With Accident Insurance, covered employees submit a claim after an accident and benefits are paid for their injury diagnosis and treatment received based on a pre-determined schedule of benefits. Typically, treatment must be received within 90-180 days of the accident. There is no waiting period for coverage to begin and there are no spending restrictions.
Life’s challenges can happen unexpectedly. When they do, voluntary benefits are there to help. Contact an Allstate Benefits sales representative to learn how our products can provide financial security when it's needed most.