Group insurance plans provide an insurance cover for a group of people with a single insurance policy. This means that the entire group is covered under one policy, instead of separate policies for each member.
What is Group Insurance?
Group insurance plans are generally purchased by organizations to cover their employees. The people covered under the single insurance plan are known as a ‘Group’.
Understanding the Group Insurance Plans and Types
Groups can be of two types:
The employer purchases an insurance plan that covers the employees of the organization.
These groups include people of professional organizations.
This can be added as a reward to your employees. It can also be seen as a medium to attract new talent and to retain your existing employees. Group plans can act as an additional benefit for your employees. It can be perceived as an appreciation for their loyalty and commitment.
Based on the features of the group plan that you purchase, the plans cater to the need of both protection and savings. You can look for plans that offer financial security to your employees; you can also check out plans that take care of their retirement needs.
These are informal groups. They can be groups that include members of the same social organization, same credit card holders, the ones who have taken a loan from a particular bank, etc. In such a case, the group administrator purchases an insurance plan that covers the members of such informal groups.
Financial institutions like banks would want protection against non-payment of loans or credit card debts. In such cases, they opt for group plans.
Group Insurance Plans provide a life cover for the members so that their families wouldn’t have to face the burden of their heavy loan.
Group Insurance Plans Types and Benefits:
Following are some of the benefits you get in group plans;
Tax benefits: Avail tax benefit on the premiums paid for the Group Plan
Act as Incentives: These plans can be used as an incentive you provide to your employees.