Group Life & Health Insurance

Many businesses offer group life and health insurance plans to their employees as part of a benefits package. This type of coverage is offered to every employee of the company. As an employer, this can provide benefits such as recruiting talented employees and retaining them once they are hired. Employees get benefits like cheaper insurance rates and guaranteed acceptance.

Function

• This type of insurance coverage is purchased by the employer and is offered to the employees of the company. The life insurance component will generally insure only the life of the employee while the health insurance can provide coverage for the employee and family members. The employer pays for the premiums on the policy and chooses the company that they will purchase the coverage from. Some employers pay for all of the insurance costs while others require the employee to pay a portion.

Benefits to Employer

• As an employer, it can be beneficial to offer group life and health insurance to your employees. Offering this type of insurance plan to consumers is a way to provide an incentive to employees that you want to recruit. Health insurance is virtually a standard benefit with companies now and it will be necessary to recruit top talent in your field. Once you hire employees, it can also provide them an incentive to continue working for you.

Benefits to Employee

• Employees in the company also receive some benefits from this type of insurance coverage. Most group health insurance plans have lower deductibles and co-pays than similar plans that you purchase alone. Another potential benefit is that your employer could pick up the tab for all of your insurance needs. This can provide you with more money that you are able to use for other purposes. You will not have to put off any necessary medical treatment since you have medical insurance.

Acceptance

• Another key factor to consider in group health and life insurance is that any person in the group can usually be accepted. This is not always the case if you are an individual and you try to buy insurance coverage on your own. If you have severe health problems, you may not be able to get a life insurance policy or health insurance. With a group plan, you have to be included in the plan regardless of pre-existing conditions.

COBRA

• COBRA is a program that allows employees who lose their jobs to continue receiving their group health insurance benefits. With this program, if you leave your job or are fired, you can continue paying for your own insurance and remain on the same group health insurance plan. This provides you with some time to transition to another employer's plan or to purchase your own individual insurance plan.