The benefits of a group life insurance policy for your company

An employer’s biggest asset is their people. Their ideas may fill their bank accounts but if it weren’t for the people executing their ideas, the magic wouldn’t happen. So, considering that, what better way to show your workforce how much you value them by purchasing a group scheme to support their well-being.

One of the most practical insurance policies available for large groups and their dependents is group insurance cover. It’s beneficial for both the employee and employer, with financial savings that are very attractive to business owners. This type of insurance will provide peace of mind for your employees, knowing that in the event that something had to happen to them or their families, they are covered.

Here are the benefits for both the employer and employee.

Employer advantages include:

  • It motivates employees: With medical expenses growing by the minute, many employees can’t keep up, let alone afford to purchase their own medical plan. Many companies don’t offer medical as a benefit, so if you’re a company that does, this alone will be something that will really motivate employees and push them to be more productive. Some individual policies require employees to reach great heights with their pay before being considered for a plan. But thankfully with group insurance schemes, all members qualify immediately.
  • Helps to retain employees: One of the most attractive benefits that any company can offer is a medical scheme. The more companies become employee-centric, the bigger the demand for health coverage will be. If you are looking to attract new and retain existing employees then this is a great way to make employees feel cared for and more committed to the company.
  • Low-cost prices: The bigger the group, the less it costs. Another perk with group cover is that it can be bought at a low or no-cost to the employee. For example, with insurance company AUL, they offer both short-and-long term insurance products at competitive rates.
  • Easy payment options: With all things medical, things start becoming a lot more technical. At least with group insurance cover, the employer can choose to pay the amount monthly, quarterly or yearly as per their convenience. This eliminates the admin hassle for employees.
  • Tax benefits: When a company purchases a policy that benefits their workforce, they get tax benefits on it. Not only does this reduce their tax liability but it’s a great company investment.

Employee advantages include:

  • It provides default insurance cost: Everyone in a group cover will get insured, but the amount of default insurance you are entitled to depend on your age and occupation. It’s a great thing for newcomers and long-standing employees who don’t have insurance because they are automatically covered simply by being part of the group.
  • It offers support, even during a claim: Group insurance covers you no matter the health condition you’re in. For example, if you have chronic health issues that usually bump up your payment in individual policies, with group cover, you get a low, fixed rate no matter your state. This policy also allows you to sign-up for a medical claim.
  • There is no medical check-up required: Many individual cover schemes require you to undergo in-depth medical examinations before being told whether or not a company is prepared to cover you. When it comes to a group health insurance, you don’t need to undergo a medical checkup or submit medical reports to get enrolled in a group health plan.
  • Immediate maternity coverage: This is something that is very attractive for soon-to-be moms. Maternity expenses are covered by the group health cover with immediate maternity benefits.
  • No waiting period: As previously mentioned, there is no waiting period for your policy. You do not have to worry about waiting a few months before your coverage kicks in. It’s effective from the day that your company signs up for it.
  • Beneficial for employee’s wellbeing: Group health insurance policies are a great way for employers to look after their teams’ wellbeing and support those and their families that cannot afford to pay for medical plans or any expenses linked to health. A healthy team is a productive team and the more you stress this, the happier and more motivated your team will be.

Apart from just the standard cover offered in group policies, there are other riders that can be added to your payment, like dental, critical illness and more. For smaller groups, this is more beneficial because it will allow employees and their families, even more, cover but with bigger groups, it becomes pricey.

As a result, group insurance is a beneficial, cost-effective and hassle-free insurance solution for employers who are looking to help their team with at least a minimum medical cover. It is, however, important to consider an individual plan in addition, since this plan will terminate if you leave the company.

Pin It on Pinterest