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Group Insurance: Who Needs it and How Does it Work?

A group insurance policy is any insurance policy provided to a group of people rather than a business or a single individual. Common options include health, vision, dental, and life insurance. Supplemental policies that can be added to those policies include accident insurance, disability insurance, cancer insurance, critical illness insurance, and legal insurance. These and other policies are most commonly offered to full-time employees of a company as a job benefit, but some businesses may also include part-time employees in one or more of their policies. 

Companies that offer group insurance to full-time employees cannot pick and choose which employees will be covered by the policy. If one employee in a group is covered, then all employees must receive the same level of coverage. However, employees can opt out of one or more group policies if they choose to do so. The main reason for opting out of coverage would be financial, as some companies only pay part of the cost of the coverage. This means that employees have to pay for a portion of their insurance costs. The money for this is typically deducted from one’s paycheck. 

How Group Insurance Benefits Employers 

Group insurance covers employees but employers also benefit from it. Providing group insurance boosts morale and helps a business retain valuable employees. It is especially important for companies with specialized workers who have valuable, sought-after skills. However, as the ongoing worker shortage has revealed, any company can benefit by keeping employees happy and on the job. The cost of replacing an employee is about 20% of an employee’s salary for mid-range jobs, and this cost doesn’t include loss of consumer trust and business while a new employee is learning the ropes. 

A company can often deduct plan contributions when filing taxes. What’s more, good insurance can often replace the need to offer a high salary. Granted, it likely costs more to provide health insurance than it does to offer a small salary raise. However, a business that provides group insurance to employees will find that it is a worthwhile investment. 

How Group Insurance Benefits Employees 

Employees benefit immensely from group coverage. Even those who have to pay part of the premium will find group coverage to be far more affordable than individual coverage. What’s more, employees do not have to undergo medical exams or disclose information regarding pre-existing conditions. This can be a huge boon for those who would find it difficult to purchase an affordable health insurance policy on their own. Another benefit is that group insurance enrollment is managed by the company’s Human Resources department, which saves an employee a lot of time and hassle. 

How to Find the Right Group Insurance Policy 

Group insurance can be costly, especially for small business owners who have a limited budget. Cost is an important factor to keep in mind when choosing a policy, but it’s not the only one. The end goal is to provide benefits your employees need to be happy and productive. Thus, business owners should ensure coverage meets employees’ needs and main concerns. Life insurance, for instance, will likely be attractive to parents and those getting on in years but might not be especially appealing to young, single employees. 

Choosing a reliable insurance agency is also important. Good agencies will have a high average review rating and plenty of happy customers. Such agencies will have a strong financial foundation and a track record for paying claims in a timely manner. Businesses that need multiple business insurance policies will likely want to pick an agency that offers all needed policies under one roof. This can save on the hassle and expense of having to work with multiple insurers and keep costs low, as bundling two or more insurance policies can lower policy costs by as much as 25%. 

Companies from multiple industries throughout the United States are choosing Grand Mutual Insurance Services to provide group insurance and it’s not hard to see why. Grand Mutual offers flexible coverage options to meet the needs of any business owner or group of employees. Its policies are reasonably priced yet provide great coverage. The agency provides efficient customer service and speedy compensation should the need arise. If you are looking for group insurance that will meet your needs at a cost you can afford, get in touch with one of our representatives to find out more about our services. 

Have questions? Our team at GMIS is here to help.

At Grand Mutual Insurance Services, we are committed to providing you with the most up to date information and guidance on the insurance market in California. Your peace of mind is our top priority. We understand the importance of reliable insurance protection and are here to support you through these challenging times.

As always, if you have any questions or concerns, please do not hesitate to reach out to our team. We are always happy to hear from you and assist you in any way we can.

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