What does the term "voluntary benefits" primarily refer to?

The term "voluntary benefits" primarily refers to benefits that are optional and paid for by employees. These benefits are typically offered by employers but are not mandatory, meaning that employees can choose whether or not to participate. Examples of voluntary benefits include supplemental life insurance, disability insurance, and accident insurance. Since these benefits are not provided at no cost and are selected based on individual employee needs and preferences, they allow employees to customize their benefits package to better suit their circumstances.

The other options do not accurately describe voluntary benefits; for example, mandatory benefits are those that employers are required by law to provide, such as Social Security or workers’ compensation, and are not optional. Retirement plans can be considered a type of benefit but are not exclusive to voluntary benefits, as some retirement plans are mandatory or employer-funded. Lastly, benefits available regardless of employment status do not align with the concept of voluntary benefits, which are specifically tied to employment and the choice of the employee.