Self-Funded Vs Group Life Insurance
These days, a good job doesn’t only mean a good-paying job. People now put importance on the perks that come with it such as Group Life Insurance. Many employers believe that a good benefits package is one of the ways to attract job seekers as well as encourage loyalty. True enough, more and more people realize the value of these perks, especially insurance policies which can be very helpful in times of emergencies. Married people with children are usually the ones who most appreciate the security of an insurance plan. What makes companies offering insurance as a benefit very appealing to people is the fact that it would cost them a lot if they were to apply for a plan individually. In a company setting, the employer secures a Group Plan for the staff and the total cost will be divided between the employer and employees. The portion that goes to the latter will even be distributed among the number of people to be covered. This is why it’s a whole lot cheaper to be insured when it comes as a company benefit instead of as a single policy applied by the individual himself. Yet another advantage of group insurance is the automatic distribution of risks among the different members of the group. This means that individuals, regardless of their health conditions, will pay the same premiums as everyone else. Due to risk of claims, insurance cover for someone with poor health is generally more expensive, sometimes by up to fifty percent, than one granted to a fellow who is considered healthy. With a group insurance, everybody pays the same cost regardless of their medical conditions. The advantage of employees being covered by a Group policy is obvious but employers also stand to benefit in a lot of ways. Aside from promoting loyalty in the ranks and reducing the management’s general liability, it also tends to increase workers’ productivity by affording them a reliable means of acquiring prompt and adequate medical care when they need it. This relatively lessens the amount of time an employee may have to skip work because of sickness. Whether you’re an individual interested in Self Funded Medical Plans or an employer looking around for a Group Life and Disability plan for your staff, what’s important is for you to work closely with your agent or insurance company so you can arrive at a plan that provides the best type of security for your or your employees’ specific needs.
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