graph of increasing sales Voluntary benefit sales, at just under $9 billion in 2019, have expanded at a compound annual growth rate of 5% over the past 10 years as employer-paid benefits decline.

The long-term future of voluntary benefits is bright despite the short-term effects of coronavirus-related unemployment, according to a new report from Moody’s Investors Service.

“Voluntary benefits are win-win products for both employers and employees, as well as for voluntary benefit providers,” according to the report. “For employers, voluntary benefits are inexpensive supplements to traditional health care and other employee benefits whose selection can be expanded with limited incremental cost. They also are an important recruitment and retention tool, particularly in tight labor markets such as the United States, pre-pandemic, in 2019.

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