Your Guide to Group Benefits Insurance

What Is Group Benefits Insurance?

Group Benefits is a type of insurance that covers a group of people under one insurance policy. This could be the employees of a company, the members of a society, or a group of professionals who work in the same field. In the past, most people would receive this kind of insurance through their employer. This is often very beneficial to all parties involved, as employers can use their insurance benefits package to attract top talent, while their employees can often enjoy lower premiums.

There is often a misconception that group benefits insurance solely covers health insurance, but other types of insurance can also be offered as part of a group scheme. What is included will often depend on a specific group, but employers are often keen to emphasize novel policies to set them apart from the competition. Often, a great benefits policy can be instrumental in increasing employee loyalty and retention.

Types of Group Insurance Product

Many different insurance products can be offered as part of a group benefits package. It’s often a good idea to consider offering a combination policy, which includes several packages at once. Aside from being a more attractive proposition to potential group participants, while giving you, as the main client, the ease of managing the various policies in one place. Here are some of the most common products that can be offered as part of a group package:

Group Disability Insurance

Group Disability Insurance protects the scheme participants if they become too sick to work through injury or illness. It’s often divided into short and long-term insurance. Short-term insurance will cover the insured if they are unable to work for a short period of time and replace a portion of their income for the period in which they are off work, usually for less than 26 weeks. Conditions that might qualify include the birth of a child, a prolonged illness, or recovery from surgery.

Long-term disability benefits will kick in when the short-term benefits expire, usually after 26 weeks. It’s used for conditions such as debilitating cancer, an accidental injury that prevents work, some mental health conditions, or other illnesses that prevent the insured from working. It’s usually paid monthly, in contrast to short-term cover, which is paid weekly. The amount of time a person can receive it varies but is usually either for a certain number of years until they return to work, or until they reach retirement age.

Group Life Insurance

Sometimes called a death benefit, Group Life Insurance is designed to financially protect a person’s loved ones, known as beneficiaries in the event of their death. It’s often an integral part of a family’s long-term plans. It’s designed to cover expenses such as funeral costs, covering a mortgage or rent, or providing college funding.

Group life insurance can sometimes be combined with an individual’s policy to provide an even greater level of coverage without the insured needing to answer medical questions and providing a level of guaranteed coverage. For employers, having a comprehensive life insurance policy can be hugely beneficial to your employees, who will always appreciate a policy to protect their loved ones.

Group Dental Insurance

Dental insurance can cover costs associated with dental care for the insured and often covers procedures such as routine cleanings, root canal treatments, and fillings. Most dental insurance policies are divided into three categories: preventative, basic, and major. The category a procedure falls into depends on the insurance provider and will determine the out-of-pocket cost for the insured. As an example, a filling might be considered to be basic care, while a bridge would be considered to be major care.

Group Vison Insurance

Similar to dental insurance, group vision insurance helps to round out an insurance package by providing a level of coverage for procedures related to the insured’s vision. For example, it could cover eye exams, glasses, and contact lenses. Most vision insurance covers the cost of routine eye exams and a portion of the costs incurred by prescription glasses or contacts.

Sometimes, an insurance company will partner with a network of providers. In this case, the insured will be required to visit a member of that network. While they can choose to go elsewhere, they will then be required to cover the cost themselves.

Reasons to Choose a Group Benefit Package

Aside from the reasons listed above, there are a host of other reasons that can be beneficial. It’s especially important for employers, as it can significantly reduce costs per employee, and employees will often need to pay less than they would have to otherwise. It also works well with a pension plan, as it can provide a level of pre-retirement security, especially if your employees have a small pension pot.

Additionally, it’s very tax-efficient, as it is often treated as a business expense for the purposes of corporation tax. More than this, however, it can be shown to increase employee productivity by removing sources of stress and distraction.

If you’re considering taking out a group insurance policy, either for your companies employees or on behalf of another group, then be sure to contact ISU Armac today! In addition to bringing the personal touch of an independent and family-owned company, we are also affiliated with ISU insurance services, a national agency that works with over 300 carriers across the country, giving us the reach of a national company beyond our home in Victorville, CA. So don’t delay, contact us today.