Group Insurance
Group Insurance

Group Insurance

Group Insurance can be purchased by an employer who has as little at two employees. In some cases the employer has several thousand employees. The actual benefits in the plan will be determined by the employer and the insurance company. While the insurance company has general guidelines on what benefits are covered, the employer can request to have special items covered provided the premium is accepted.

Group insurance is considered to be a benefit for the employees of the employer. In most cases, the employer will pay a portion of the premium of all the benefits. This cost sharing arrangement is considered to be an employee benefit. Employers use the group benefits to sometimes attract and retain good employees.

Caution: While grouped benefits are decent, and while they cover many health related expenses, it is wise to read and understand your policy. The time to read the contract is not at the time of claim.

It is also important to coordinate benefits between spouses. Sometimes it is beneficial to combine the benefits of the policy and pay only for the benefits that the others do not cover.

Types of Group Insurance

While not all group policies are created equal, there are some basic features you will find in the group. These include Life Insurance, Long Term Disability, Vision, Health and Dental benefits.

Life Insurance

The Life Insurance is usually mandatory for all. This life insurance should be considered as a supplement to personal life insurance. Because term group life is not “owned” by the employee, then it cannot be considered as a dependable feature of your personal plan.

Long Term Disability

Disability coverage (LTD) is intended for employees and not spouses. If a spouse does not have a group plan at their employer- an individual plan should be considered.

Long Term Disability coverage is considered to be a service which will pay the employee a portion of their income, and at the same time, provide assistance in an effort to get the employee back to work. Group LTD benefits can be taxable or non taxable depending on who is paying the premium.

Health & Dental Plans

The Health and Dental plans are the most popular pieces of the plan since every employee feels this is where they will benefit the most.