When it comes to employee benefits, there’s a growing gap between what employers offer and what employees need—and nowhere is that more evident than in supplemental health coverage. These “voluntary” benefits—like accident, hospital indemnity, and critical illness insurance—have long been treated as optional add-ons. But today, for millions of workers facing rising costs, medical debt, and shrinking safety nets, they’re anything but optional.
In Prudential’s 2025 Benefits & Beyond study, nearly a quarter of employees said they expect these benefits to be part of a modern workplace offering. But many don’t even know if they’re available through their employer. That’s not just a communication gap. It’s a missed opportunity that can leave workers financially exposed.
The truth is, a lot of people are just trying to make ends meet: Our study found that one of employees’ top concerns is making it paycheck to paycheck. That means a single accident or hospital stay can quickly turn into a financial burden—even for those who have insurance, given rising deductibles and copays.
As someone who has worked in this industry for 25 years, I’ve seen how quickly the disconnect becomes personal. Employees discover a benefit only after they need it. Or they opt out of coverage they don’t understand, only to regret it later.
We call these benefits “voluntary,” but in today’s environment, they’re essential. Financial protection isn’t a nice-to-have anymore. It’s a daily challenge.
Yet many companies still treat these benefits as extras—when they should be front and center. Employers don’t need to overhaul their entire strategy, but they do need to reposition how they frame and communicate these offerings. That starts with treating voluntary benefits not as add-ons, but as core to supporting employees’ financial wellbeing.
And it’s not just about offering them, but also explaining them. Helping employees see how a small payroll deduction—often less than what they spend on streaming TV or cellphone services—could provide meaningful protection and help prevent a major financial disruption down the road.
This isn’t just about values. It’s about business. Employees who perceive their benefits as modern are 20 percentage points more likely to be satisfied and just as likely to stay with their employer, according to our research. And nearly a third of employees say they don’t know if these essential coverages are even available to them.
At a time when costs are high and trust is fragile, employers can’t afford to overlook the basics. Today’s frontline workers aren’t asking for perks—they’re asking for financial protection. Voluntary benefits like accident, critical illness, and hospital indemnity may not be mandated, but they’re no longer optional. They are as key as having health, life, and disability insurance. And for employers who want to retain their workforce and earn their trust, that shift in mindset can’t come soon enough.
Bijit Das is head of Voluntary Benefits and Growth Enablement for Prudential Group Insurance.
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