In insurance, what does the term "flexible benefits" refer to?

The term "flexible benefits" refers to a type of employee benefit plan that empowers employees to choose how to allocate their benefits according to their individual needs and preferences. This approach recognizes that different employees may have varying priorities for their benefits; for instance, some might prioritize health insurance, while others might prefer retirement savings or childcare assistance.

Flexible benefits plans typically allow employees to select from a range of options, adjusting their benefits package to best suit their personal circumstances, which can enhance employee satisfaction and engagement. This customization aspect of flexible benefits is crucial as it ensures that employees feel their specific needs are being met by their employer.

In contrast, the other options describe plans with fixed benefits or restrictions that limit customization, which do not align with the principles of flexibility and choice integral to flexible benefits.