Group insurance is an insurance that covers a defined group of people, for example the members of a society or professional association, or the employees of a particular employer. Group coverage can help reduce the problem of adverse selection by creating a pool of people eligible to purchase insurance who belong to the group for reasons other than the wish to buy insurance, which might be because they are a worse than average risk.
Group insurance may offer life insurance, health insurance, and/or some other types of personal insurance. You can pick and choose what you want to give to your employees in regards with the benefits and the deductible. The benefits chosen would be Prescription Drugs Eye care, Dental Care, Physiotherapist, Massage Therapist, etc. You also have to decide the maximum limits on various benefits. Most group plans have some minimum Life Insurance and Long- Term disability Insurance mandatory. The deductibles could be as much as you choose, $0 Deductible being most expensive. Co-insurance (for example 80% or 90% or 100% covered) plays a major role in cost of the plan. The insurance companies give you a quote based on average age of your work force and the risk profile of their job.
When covering a medium or large group, usually there are no medical questions asked and pre-existing medications are covered too. Moreover even if you design the plan so that some percentage is borne by the employees, they still prefer having it rather than having no plan or buying an individual plan. Larger groups usually get a better price than an individual plan as is. The premium of the plan is reviewed every year and could increase if the claims experience of the insurance company is very unfavorable. Having a good Group insurance plan in place makes your company look better than your competition.
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