31 Specifics About Group Insurance Plans

If your employer provides insurance as part of its benefits package that’s not part of government-backed benefits plans, that kind of insurance is called group insurance.

Here are thirty one specifics about group insurance plans that will help you to better understand what kinds of plans are offered, how they work, and the elements and conditions associated with group insurance.

Reasons for Group Insurance

There are a wide variety of reasons for employers to offer group insurance, as well as for employees to seek out companies that offer these kinds of plans.

1. No health checks
2. Build goodwill between employer and employee
3. Less expensive due to loss pooling
4. Premiums are taken out of pre-tax income
5. Costs for employers are tax-deductible
6. Healthier workplace thanks to enhanced medical services
7. Lower out of pocket costs for employees
8. Companies can attract better workers

Employers commonly provide group insurance plans for the workers, as part of packages that entice high quality employees to sign on with their company. A great group insurance package can be the deciding factor in choosing a job for many individuals, as the benefits can mean a great deal of savings in the short term or a better life in the long term.

Unfortunately, employer benefits have been on a downturn for decades with no sign of coming back. Employees are finding that they are paying more and more of the costs of group insurance plans, taking more out of their paychecks. That reduction across the board has made companies that do offer great benefits packages that much more competitive in the marketplace.

Kinds of Group Insurance

People are often amazed at the sheer variety of group insurance that’s available. There are truly policies out there for everyone, though some might be more applicable than others.

09. Health insurance
10. Dental insurance
11. Eye care insurance
12. Critical illness insurance
13. Accidental death and dismemberment insurance
14. Short term disability insurance and Weekly indemnity insurance
15. Long term disability insurance
16. Sick pay benefits
17. Health Care Spending Accounts
18. Supplemental life insurance
19. Optional life insurance
20. Basic life insurance
21. Basic dependent life insurance
22. Paid up life insurance
23. Survivor income insurance

This list is far from all encompassing, but does include many of the most popular kinds of group insurance available in the Canadian marketplace today.

One thing that jumps out here is the incredible variety of life insurance policies available for employees. It’s important to note that a single employer is unlikely to offer all of the life insurance options on this list, with companies more like to offer one or two kinds of group life insurance policies. Another essential note is that life insurance policies can often be carried on after an employee leaves their job, though the premiums might be higher without the group plan. That’s important to realize with regards to life insurance especially.

Policy details

The specific details of a group policy are laid out in extreme detail. That’s because an group insurance policy is a legal contract between three parties: the employer, the employee and the insurance company. What are the policy specifics that are part of a group insurance policy?

24. Beginning date of coverage
25. Ending date of coverage
26. Eligibility requirements details
27. Claim payment
28. Premium due date
29. Calculation formula for premiums
30. Beneficiary information
31. Coverage limitations

Understanding the specifics of a group life insurance policy is immensely important. Though group insurance policies tend to have fewer loopholes than single payer plans, knowing what to expect in terms of benefits and conditions will mean that there aren’t any surprises when it comes time to take advantage of the benefits offered.

One big advantage of group policies is that an individual is not left to advocate for themselves. With the power of a company behind them, individuals have a stronger support system that often means less hassle in terms of benefit payout. Human resource departments at companies are usually well versed in the ins and outs of a policy, meaning that it’s not up to the individual to figure it all out on their own. They can explain in easy to understand terms how benefits are paid out, what kinds of premiums are charged, and what the insurance picture looks like if you were to leave the company. In addition, HR departments generally update insurance information annually, allowing beneficiary and life changes to be accounted for to ensure that everything runs smoothly.

Though individuals will still have to correspond with the insurance company directly in the case of a claim, the employer takes a great deal of the burden off of their employees when it comes to dealing with insurance claims and policy specifics.

There are so many reasons why group insurance plans are great for both employers and employees. Check with your employer about your options for group insurance, so that you can make sure that you’re getting best benefits possible for you and your family.

For more information on group insurance plans or to receive a no-obligation quote, contact Morgan National Corporation at 1-866-595-3533.