Finance

Different Types Of Group Insurance Policies, Explained

Different Types Of Group Insurance Policies, Explained

A typical issue faced by most organisations these days is employee attrition. Employers have to keep on evolving different ways to manage this problem.  For instance, some organisations focus on their culture, others on the office environment and infrastructure, and some try to strike a chord by offering an attractive employee benefits package. Group insurance is  one effective way to attract and retain quality employees. Group insurance is perhaps the most common type of insurance taken by large businesses, but with a range of coverage options and benefits available, it’s just as well-suited to smaller firms.  Most importantly, such plans are available to all members of the particular group or all employees, irrespective of their gender, age, salary, level or status in the organisation, and socio-economic background.

Different Types Of Group Insurance Policies, Explained

These days, many insurance companies have come out with group insurance plans that can be customized to meet the requirements of varied groups. Corporate insurance advisors or brokers like SecureNow offer online comparison of various group insurance plans online, and thus the buying process has become quick and convenient.

The different type of group insurance plans available in the market are as follows:

Group Term Life Insurance

As the name suggests, group term life insurance offers life cover to a group of people under a single plan. This insurance is not limited just to the employer-employee group, but also extends to other groups like NGOs, banks, etc.

A group term life insurance plan for employees offers financial assistance to the beneficiaries of the employee, in the event of his/her demise. It offers varied benefits, including comprehensive insurance coverage, affordable premium rates, rider options, free limit cover and easy premium payment options.

For employers, group term insurance offers tax deductions on the premium paid and acts as an employee loyalty-building measure.

Group Health Insurance

Group health insurance is a medical insurance plan that provides coverage to a group of people, including an organisation’s employees or members of the society of a registered residential apartment complex. Usually, group health insurance is offered by organizations, business groups, and banks to their employees, and the premium cost is borne by the organization.

There are different variations of group medical insurance plans, and according to the requirements of the employees, every business can customize a plan. For instance, some plans offer coverage to the family members of the insured employee.

Benefits of group health insurance are enjoyed by both employee and employer. For instance, employees are not asked to submit any prior medical reports, and they get coverage against pre-existing conditions, plus there is no waiting period for the cover to begin. Similarly, an employer can avail multiple benefits like:

  • Lower cost on premiums
  • Tax benefits
  • Flexible premium payment options
  • Enhanced employee retention and loyalty

Workers Compensation Insurance

Workers’ compensation insurance offers coverage that helps protect employers from the potential financial losses possible if a worker contracts an illness on the job or is injured. It covers the costs of the injured employee’s medical expenses as well as protects employers from the potential costs of employee claims.

If the employed worker suffers an injury or disease, the insurance not only offers medical benefits and hospital expenses but also provides lost wages and a lump sum amount in case of permanent impairment.

Group Personal Accident Insurance Cover

Group personal accident insurance offers coverage for accidental death, medical expenses, as well as compensation for partial or total disability. This comprehensive cover can be bought by large as well as small organisations, including banks, corporates, colleges, etc. and can be customized to suit the needs of the group.

This insurance is beneficial for organizations who are on the lookout for ways to shield their employees against specific risks that can cause disablement or death.

Public Liability Insurance

Public liability insurance is beneficial for businesses which come into contact with the general public regularly. This insurance is essential if the services offered by the business or its workplace can cause damage or injury to someone especially if:

  • The work is carried out in public places (as a builder)
  • The customer visits the business premises regularly
  • If the services are offered at the client’s home or business

This insurance covers the costs of payments of claims by members of the public for:

  • Bodily injury
  • Legal expenses
  • Property damage

Group Travel Insurance

As the name suggests, group travel insurance financially safeguards a group of people travelling together from travel issues, including during medical emergencies. It also covers the risk faced by travellers, including theft of luggage and documents.

To summarize, we can say that the need for group insurance is felt more today especially with businesses becoming more employee-centric each day. As an employer, you must select a relevant group cover to make your employees happy and in turn, get long-term dividends in the form of employee engagement and retention.

About the author

John Paul

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