Group insurance
Group insurance is insurance coverage bought for and provided to a group instead of an individual. For example, as a small business owner you may buy health, critical illness, and term life insurance for your employees at a far better rate than the employees could obtain on their own.
Group insurance is not only advantageous to employees or group members because it is cheaper than they could obtain on their own, but some people may be able to get coverage under the group umbrella when they would be denied coverage individually because of pre-existing conditions or other factors.
A feature which is sometimes common in group insurance is that the premium cost on an individual basis may not be risk-based. Instead it is the same amount for all the insured persons in the group. So, for example often all employees of an employer receiving health insurance coverage pay the same premium amount for the same coverage regardless of their age or other factors.
Some benefits to employees covered under certain types of group insurance are:
- Peace of mind in times of uncertainty and worry if they are unable to work through ill health or accident
- Financial security, through a tax-free lump sum payment when they face a critical illness
- Income paid until they return to work
Benefits as a small business owner choosing certain types of group insurance:
- Help your company attract and maintain the best workers by providing the benefits of certain group insurance packages
- Showing genuine care for your staff welfare
- Premiums on some policies are not treated as a taxable benefit on the employee and do not attract any additional National Insurance liability on either the employee or the employer
Examples of group insurance are: Group life insurance cover, Group critical illness cover, Group income protection insurance, Group health insurance and Group pensions.
Any questions on group insurance?
Please call us on 01582 839280 or Email us.
