What Are The Benefits Of Group Insurance?

Buying a group insurance plan can be rewarding for individual group members such as employees as well as employers. Today, many companies and businesses prefer to cover their employees with group insurance as part of the overall compensation. Here are the key advantages of a group insurance plan for employers and employees.

• The premium paid in group insurance is lower than the premium in an individual policy for a member. These plans reduce the liability of the insurance provider as the risk is spread across all members of the group.

• As premiums are often paid by the employer, group insurance offers a convenient way to cover all employees with different income brackets. These plans provide a cost-effective means for employers to provide an insurance cover for their employees.

• Group insurance helps enhance loyalty of employees for the employer. A group member feels valued to be a part of the group and is likely to continue his association with the group for a long period. In addition, these plans help employers create an employee-friendly workplace and positive work environment.

• Often, a group insurance plan covers family members of group members. For example, many group health insurance plans cover spouses, dependent children and parents of the group member.

• Group members can claim tax benefits on the premium paid on group insurance while filing their income tax returns. Employers can also claim tax benefits for paying premiums on insurance plans for their employees.

• Group insurance provides standardised coverage for all members. It helps people of lower income groups to get the same coverage as those with higher income groups.

• Some group insurance plans can be converted into individual plans when a member leaves a group. In such a case, the member has to pay a conversion fee.

Buying a group insurance plan can be rewarding for individual group members such as employees as well as employers. Today, many companies and businesses prefer to cover their employees with group insurance as part of the overall compensation. Here are the key advantages of a group insurance plan for employers and employees.

• The premium paid in group insurance is lower than the premium in an individual policy for a member. These plans reduce the liability of the insurance provider as the risk is spread across all members of the group.

• As premiums are often paid by the employer, group insurance offers a convenient way to cover all employees with different income brackets. These plans provide a cost-effective means for employers to provide an insurance cover for their employees.

• Group insurance helps enhance loyalty of employees for the employer. A group member feels valued to be a part of the group and is likely to continue his association with the group for a long period. In addition, these plans help employers create an employee-friendly workplace and positive work environment.

• Often, a group insurance plan covers family members of group members. For example, many group health insurance plans cover spouses, dependent children and parents of the group member.

• Group members can claim tax benefits on the premium paid on group insurance while filing their income tax returns. Employers can also claim tax benefits for paying premiums on insurance plans for their employees.

• Group insurance provides standardised coverage for all members. It helps people of lower income groups to get the same coverage as those with higher income groups.

• Some group insurance plans can be converted into individual plans when a member leaves a group. In such a case, the member has to pay a conversion fee.