What is group insurance?
Generally, Group Insurance is defined as a policy that an employer makes application for with an Insurance Company. The employer is generally required to pay some portion of the employees’ premium and the employee must work some minimum number of hours per week. The employer can pay a greater portion of the premium, but is not required to do so. In some states, Group Insurance is “Guaranteed Issue”. which means that the Insurance Company cannot turn down any applicant.
Group insurance is a health care coverage plan in which individual employees or members are included under one ‘master policy’ owned by their employers. Because the group insurance plan has so many contributors, the policy often provides coverage for more services at a much lower cost per participant. Group insurance may be provided by other organizations besides for-profit companies. Labor unions, churches and other service groups can also obtain group insurance for recognized members and possibly their dependents. Individual members of a group insurance plan receive insurance certificates which demonstrate their eligibility for benefits. If the master policy held by the employer requires participation in an HMO (health maintenance organization), then individuals are also registered as members. Other group insurance policies may be associated with major medical groups such as Blue Cross/Blue Shield. A major medical policy may or may not restrict an individual’s choice of primary physi
What are its advantages and disadvantages? What is Group Insurance? Group Insurance is simply one insurance contract that provides insurance coverage to a number of persons who have some type of relationship to one another. The most common owner of a group insurance policy is a business providing benefits to its employees. Others may be clubs and associations. What are examples of Group Insurance? The most common type of insurance offered to employees is group medical. There are a variety of plans out there with numerous insurance companies. What other plans are right for you depends on you, your business and your employees. The important thing is to find the plans that best suit employees needs at a cost employers can afford. What are other types of Group Insurance? a. Life Insurance The insurance company agrees to pay a stated sum or income to the employee’s beneficiary. The policy is usually a term policy, and most employers usually provide a factor of annual earnings benefit (such
