The Four Major Reasons for Getting a Group Benefit Policy
Within the number of challenges that businesses face today, the employee benefits can be one of the most difficult areas to handle in the best way possible. The balance between providing quality benefits, retaining quality employees and controlling expenses is one of the most important factors a company needs to take under control.
First of all, we need to define what does a company group benefit insurance do for you and your employees: it shares the financial risk of health related expenses among the group of employees, under one contract, who pay into a fund or pool.
When a employer has a Group Benefits Plan in place for their employees, any member of the group who becomes ill or requires services is financially compensated by the plan according to the terms laid out in the contract between the employer and the insurance company. Family members of employees are also covered under the plan as specified by the contract.
The advantages of a Group Benefits Plan to Your Employees are as follows:
- You have a competitive edge in the job market. You attract and retain employees, which helps minimize costs associated with high turnover.
- You have access to insurance at a reduced cost. Compared to most health and dental individual insurance plans, you save a lot of money when buying for a larger group of people. Group plans do not discriminate and are not anti-selective, offering all participants the same benefit plan.
- It's a cost effective method to protect employees. Increased productivity and higher morale by providing financial security and support to employees.
- You have a tax effective form of compensation. Most premiums an employer pays are tax deductible as a business expense.