What is Group Insurance and Can I Find It Online?

Keli W. Rodriguez

Group insurance is a plan of health, life, auto, or homeowners insurance that covers a group of people rather than an individual. Group insurance policies are generally more affordable than individual insurance policies because policyholders don’t normally pay the full premium. They’re usually only responsible for co-payment.

The easiest way to get group insurance is through your employer. Most employers offer their employees a group health insurance package, and some offer life, auto, and homeowner’s insurance coverage, too. In the event you must pay some of the group insurance premium, an employer will normally deduct the amount from payroll. Most employer-sponsored group insurance benefits are available to a policyholder’s family members, too.

You can also obtain group insurance through any clubs, organizations, or associations with which you’re affiliated. These include sororities and fraternities, college alumni associations, and senior citizen organizations. Some credit companies even offer group insurance as benefits for their cardholders.

It’s pretty easy for employers or other organizations to find group insurance online. Actually, they can find group insurance online in basically the same way individuals search for insurance only. Simple visit a search engine, query “employer group insurance” or “group insurance for a small business,” and browse the results. Employers can choose from many group insurance options. For example, group health insurance can be managed care, cafeteria plans, or health savings accounts.

The application for employers seeking group insurance is a bit different than the application for individuals seeking insurance. Employers will be required to enter thorough contact information for the business, as well as the type of business, number of employees, and desired deductible and co-pay.

Generally, after the application has been submitted, the information is compiled and a few live insurance agents from a network of agents will contact the employer. These agents have deals for the employer based on the business and employee information submitted. The employer simply chooses the best group insurance policy.

What Is Group Health Insurance Plan?

A group health insurance plan is an incentive that mostly companies/organizations offer to employees. It is a win-win situation: The employer gains the confidence of the employee as the latter feels that their organization is very concerned about their health and well-being, while the employee, and possibly even their family, gets health insurance coverage without paying any premium. The company buys a group insurance policy from an insurance provider, which requires a certain number of participants to come into effect.

 Who pays the premium?

The premium on the joint policy is paid by the employer. However, the employee cannot select the size of the coverage and they will be entitled to the benefits only as long at they continue to work for the same organization; as soon as they quit, they cease to be members of the group health insurance policy. It is for this reason that the best health insurance is the one bought by the individual, for themselves of their family, in addition to the group health insurance provided by their employer.

Key differences between an individual and a group insurance policy

·         In an individual policy, the policy contract is in the name of the individual, while the contract of the group policy is held by the employer.

·         The individual has the right to nullify the policy, while in the latter case, only the employer can do so.

·         An individual can take his personal health insurance for any length of tenure they desire, but in the latter case, the individual’s coverage is valid only till the end of their employment tenure.

·         The individual policy is dictated by the age and health condition of the insured, while the group insurance policy is based on the fundamental financial credentials of the employer.

·         The premium on an individual health insurance policy increases as the person grows older, whereas in the group health insurance policy the age of the employer is not taken into consideration, even as the years pass by.

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