The Most Popular Voluntary Benefits of 2025

As health care costs continue to rise, voluntary benefits are becoming an increasingly attractive option for both employers and employees. With many companies struggling to provide comprehensive benefits packages, voluntary benefits offer a cost-effective way to enhance offerings without additional financial strain on employers. These benefits, available for elective purchase by employees, can supplement traditional health insurance and provide much-needed financial security.

According to a 2024 report from benefits administration platform Benefitfocus, nearly 8 out of 10 employees say they are more likely to work for an employer that offers voluntary benefits. Employees appreciate the convenience of having a variety of insurance options in one place, often at lower premiums than if they were to purchase policies individually. These benefits also allow for more personalization, catering to the diverse needs of today’s multigenerational workforce.

Let’s take a look at the voluntary benefits that are gaining traction and making a big impact in 2025.

1. Supplemental Health Benefits

With rising medical debt and unpredictable health care costs, supplemental health insurance is more popular than ever. According to KFF, nearly 1 in 12 American adults owe medical debt, totaling at least $220 billion. This financial burden often results from unexpected medical emergencies rather than planned expenses. In fact, a Federal Reserve report found that 37% of adults cannot afford a $400 emergency bill.

As a result, accident, critical illness, and hospital indemnity insurance have become essential for employees looking to offset deductibles, copays, and other medical expenses. These plans provide an affordable way to fill coverage gaps, offering peace of mind in the face of unforeseen health challenges.

2. Student Loan Repayment Assistance

The student debt crisis continues to be a major concern for employees, particularly younger workers. The Pew Research Center reports that 1 in 4 U.S. adults under 40 have student loan debt. To help ease this burden, educational assistance programs—traditionally used for tuition and supplies—can now also be applied toward student loan repayment.

Employers can offer up to $5,250 in student loan repayment benefits tax-free, but this provision is set to expire on Dec. 31, 2025. Given the increasing demand for employer-sponsored student loan assistance, now is an ideal time for businesses to establish or expand their educational assistance programs.

3. Cybersecurity and Identity Theft Protection

With cyberattacks becoming more sophisticated, cybersecurity benefits are in high demand. According to cybersecurity provider Check Point, cyberattacks per organization reached an all-time high in the third quarter of 2024—a 75% increase from the previous year. The rise of social engineering, deepfake technology, and AI-driven attacks has heightened concerns about digital security.

As more employees work remotely and rely on mobile devices, cybersecurity threats extend beyond personal data breaches to workplace security risks. Offering identity theft protection and cybersecurity support as a voluntary benefit helps employees safeguard their personal and professional information.

4. Term Life Insurance

Financial security remains a top priority for American workers. Guardian Life Insurance reports that while 80% of Americans worry about financial preparedness in the event of a premature death, nearly 30% do not own life insurance.

Employer-sponsored life insurance provides employees with a simple and cost-effective way to secure coverage. Many organizations offer a base-level group term life insurance policy, allowing employees to purchase additional coverage. By providing this benefit, companies demonstrate a commitment to their employees’ long-term well-being.

5. Legal Plans and Services

Legal services are another growing voluntary benefit, as employees face various legal needs throughout their lives. From estate planning and family law issues to landlord-tenant disputes, having access to affordable legal assistance can be a game-changer. Legal plans offer employees peace of mind and financial protection, making them a valuable addition to any benefits package.

The Bottom Line

As voluntary benefits gain momentum, employers have a unique opportunity to enhance their offerings and attract top talent. By addressing key concerns such as health care costs, financial security, and digital safety, businesses can create a more supportive and competitive workplace.

With 2025 shaping up to be a transformative year for employee benefits, now is the time for employers to evaluate their offerings and ensure they meet the evolving needs of their workforce. By doing so, they can foster a more engaged, satisfied, and loyal team.

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Price & Ramey is committed to helping you, your family, and your business. For additional risk management guidance, contact us today.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Employers should consult with legal counsel or safety professionals for specific compliance recommendations.