The Benefits of Group Insurance

1
The Benefits of Group Insurance
2

• People often ask what the benefits of having
  group insurance are. That really depends on your
  perspective. There is the perspective of the
  company which has the group benefits for their
  employees and then, of course, there is the
  perspective of the employee who is receiving the
  benefits. The subject of group insurance can be
  broken down into many sub categories. For
  discussion in this article, I will deal from the
  two perspectives mentioned and discuss the
  general benefits of group insurance from each of
  those perspectives.

3

• Group Insurance from the Employer's Perspective
• Benefits have traditionally been offered to
  employees in addition to a salary or an hourly
  wage. They were considered an extra which was
  offered to employees after becoming permanent
  staff, usually after a three or six months
  waiting period. Over the last thirty or so years
  this insurance expanded from basic prescription
  drugs and dental coverage to include short and
  long term disability, critical care, and now,
  even floating holidays. Group benefits were used
  to attract and keep good employees.
• In the last couple of years, these benefits have
  more looked like an expense for employers and
  they no longer want that additional expense.
  Group benefit costs are only one of the reasons
  why a lot of companies have started "contracting"
  workers. They want to fix their costs to a "per
  job" or "per hour" rate. It has become a very
  competitive world in business today. A lot has
  changed.

4

• Group Insurance from the Employees Perspective
• Employees love group insurance. Why wouldn't
  they? At least half of the costs are paid by the
  employer and in some cases 100 of costs are
  employer paid. The employee is more comfortable
  knowing that a big part of their prescriptions
  and dental costs are covered. Frankly, group
  insurance encourages people to take better care
  of their health. Higher claims unfortunately mean
  higher costs, and many companies are now
  reviewing where benefits fit into their
  "compensation program".
• As well, employees who have health challenges are
  usually automatically included in a group
  insurance program without having to give medical
  evidence to be covered. It is a big plus for
  them. I will say, that group benefits as people
  have known them in the past, are slowly
  disappearing. There are estimates now, that 60
  of the people in secondary and post secondary
  education will not have "group insurance"
  benefits in the future.

5

• The good news is that a number of insurance
  companies have now started specializing in
  benefits for as few as one person. There are some
  restrictions, but group benefits for one is now
  available. As well, there are also employers
  utilising Health Spending Accounts to fill the
  gap once filled by Group Insurance. That, however
  is a topic which will be covered in a different
  article.
• Article Source http//EzineArticles.com/3935406

6
Follow us on
https//www.facebook.com/bajajallianzlifeinsurance
ltd
https//www.linkedin.com/company/bajaj-allianz-lif
e-insurance-co-ltd-
http//plus.google.com/bajajallianz/posts
https//twitter.com/bajajallianzLIC
https//www.youtube.com/user/jiyobefikar
https//instagram.com/bajajallianzlifeinsurance
7
Click to know more on Group Insurance
https//www.bajajallianzlife.com/group-insurance.j
sp
Thank You