If you’re a small business that offers health insurance to its employees, you may think you’ve got the “benefits” box checked - and it’s true that health insurance is the #1 desired benefit for employees. But have you thought about how to enrich your benefits package over time? Additional lines of coverage can be a great way to do just that. With voluntary life and disability coverage, you expand your benefits package without adding to your own direct benefits cost, because benefits are completely employee paid.
Why voluntary life and disability? Because more than 100 million Americans are uninsured or underinsured1, and 47% of households would face financial hardship within six months of losing a wage earner.2 Voluntary life insurance provides a financial safety net for an employee's family, and voluntary disability insurance protects employees' income if illness or injury keeps them from working. Read on to learn more!
The lowdown on voluntary life and disability
Voluntary life insurance protects the people who depend on someone’s income. Through Gusto, employees and their dependents can access up to $150,000 in “guaranteed issue” coverage.3 This means for qualifying amounts, typically there's no medical exam required, no doctor's appointments, and no lengthy questionnaires.
Voluntary disability insurance protects employees in case of income loss due to illness or injury. For most people, the greatest financial risk from a disability isn't the medical bills, it's losing their paycheck. Short-term disability insurance covers income loss during recovery from a temporary illness or injury, while long-term disability insurance protects against extended income loss that could stretch months or years.
From a cost standpoint, voluntary life and disability insurance can be a win-win for both employers and employers. These are employee-paid benefits, which means your employees choose whether to enroll, and pay their own premiums as automatic deductions through payroll. As the employer, you make the coverage available; your employees decide if they want it. Because premiums are employee-paid, your direct cost as the employer is essentially zero.
For your employees, voluntary coverage is often a good financial deal. For many people, group rates through an employer are lower than what they'd find on the individual market, making quality coverage obtainable at an accessible price. Employees can also often convert their plan to an individual policy if they leave the company. It’s portable coverage that goes with them.
How Gusto makes voluntary benefits simple
Gusto works with leading national carriers to offer coverage options that fit the needs of employees. We sync voluntary life and disability benefits directly with payroll, so there's no separate system to manage, no manual deduction tracking, and no disconnected carrier portal to log into.
For your employees, Gusto's enrollment flow is designed to make coverage choices clear and accessible. When enrollment is easy, participation goes up, and your team is able to access benefits that genuinely improve their financial security.
Ready to add voluntary life and disability?
If you're already on Gusto, adding voluntary life and disability coverage is simpler than you might think. Whether you're building your benefits package for the first time or looking to fill a gap in what you currently offer, voluntary benefits can be a high value addition.
If you haven’t yet integrated your benefits into your Gusto account, you can get started today. We can usually support your existing plans, and you’ll love being able to manage everything in one place.
Speak with a Gusto benefits advisor to explore your options.
Insurance products and services offered through Gusto Insurance Services, LLC (CA Lic # 0K28399). This content is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, tax, or HR expert for specific guidance.
¹ LIMRA and Life Happens, Insurance Barometer Study, 2025.
² LIMRA, 2025 Facts About Life Insurance, 2025.
3 Guaranteed issue amounts vary by carrier, plan, and group size. Contact a Gusto licensed benefits advisor for details.
