Group Insurance Plans

A group insurance plan is exactly what it sounds like…insurance coverage for a “group” of people… that could be a company, business, or a professional or membership organization. Because the cost of covering a group is less expensive than purchasing individual policies for your employees or members, group insurance tends to be much more affordable. It can be set up to cover just the employee, or also include coverage for a spouse and children. At this time, 60% of those insured in the United States, receive insurance coverages from their employer.

Group plans usually include:

Health Insurance – The premium cost is usually shared between the employer and employee. Usually includes a deductible, co-pays, and covers well-care, as well as hospitalization, tests, and specialists.
Life – Usually paid by your employer and covers 2 times annual salary. Higher limits may be available at an additional cost or employee contribution. It is not portable, so when you leave your job, you lose the life insurance coverage.
Dental – Usually covers $1,000 or $2,000 maximum max payout. There are no co-pays for preventive checkups and cleanings. Minor work, like fillings, are covered usually around 80%. Major work, like root canals and crowns are usually covered around 50%.
Vision – Usually covers one annual check-up and either 1 pair of lenses or contacts, up to policy limits. Also covers one pair of new frames every 2 years.
Disability – Employer paid short and/or long-term disability usually covers 40% – 60% of weekly or monthly salary. Other factors include an elimination period before insurance kicks in.

There are many benefits that you can offer through your business. A survey by Glassdoor shows that the most important benefit employees are looking for, in today’s employment market, is insurance. Great insurance coverage helps businesses attract great employees, and as an added benefit, helps your company retain them as well.

Look at your insurance options

Assessing the many and varied group insurance options for your business is, simply put, overwhelming. Each business is unique, as is the needs of its employees. The experts at Real Life Associates work with many group insurance providers. We understand the group insurance marketplace and are ready to guide you through the entire process. You can rely on our knowledge and expertise to:

Help your company select a plan that’s right for both your business and your employees, based on your industry and the insurance needs and preferences of your employees.
Work with your human resources department to set up your group insurance plan, options, enroll employees, and keep your company compliant.
Educate both HR and your employees, answer questions, and be a valuable resource.

Benefits of group insurance

The biggest benefit is savings. Both employers and employees pay less for insurance coverage when they purchase it as a group and get, potentially, more benefits.

Employees

As part of a group insurance plan, the employee contribution is paid with pre-tax dollars. Not only is your insurance less expensive, but your income goes farther. Group insurance also offers larger networks than individual plans, with access to more and often better doctors, dentists, and hospitals.

Employers

Companies with group insurance plans get numerous tax savings:

Employer contributions are tax deductible
Employer payroll taxes are reduced
Employer Workers comp premiums are reduced

Your company doesn’t pay payroll taxes or workers comp premiums on money used towards group insurance benefits.

Benefits of hiring an independent group insurance agency

They are licensed experts.
They offer one-stop shopping for all your company’s insurance needs.
They give you a choice because they represent many different companies that offer a wide variety of coverage options and price points.
They act as your company’s personal advisor, taking the time to listen to you and understand your company and employee’s needs.

Ready to get started? Contact the group insurance experts at Real Life Associates today at 212.385.1700, or send us a note from our Contact page.