Group Insurance
Group Health Insurance is the most crucial part of a benefits package. It is no secret that in our current environment, it has become a challenge for small employers in Ontario to maintain affordable health coverage for their employees due to ever increasing costs.
What is a Group Health Insurance Plan?
A group health insurance plan is a cost-effective health insurance plan that provides coverage to members of a group either employees of a company or members of an organization or association.
Benefits of a Group Health Insurance Plan.
The primary advantage of a group plan is that it spreads risk across a pool of insured individuals. This benefits the group members by keeping premiums low, and insurers can better manage risk when they have a clearer idea of who they are covering.
Most Group Insurance Plans Include The Following Coverage:
Life insurance for employees and/or their dependents:Â in the event of death of an employee or one of his/her dependents (spouse or child) are covered.
Disability insurance (wage loss replacement): provides employees with replacement income in the event of a disability caused by an illness or accident occurring on or off the job.
Health insurance (medical care):Â provides coverage supplemental to government healthcare plans such as prescription drugs, paramedical care (chiropractor, physiotherapist etc.) eye exams, emergency out of province.
Dental care:Â provides coverage such as cleaning, filings, exams, x-rays etc.
Accidental death and dismemberment:Â in the event of a serious accident, an additional amount would be paid in case of death or dismemberment (e.g.: paraplegia, amputation, loss of sight, etc.).
Employee assistance program (EAP):Â additional service provided to employees and their families, which usually includes assistance for various problems: marital and family problems, depression, anxiety, alcohol, drugs, gambling, eating disorders, financial, legal, etc.
Advantage of Group Insurance Program
Although governments offer several major insurance programs (healthcare, disability, workplace injuries, etc.), they don’t cover everything. Group insurance provides extra coverage to ensure the physical, mental and financial health of employees and their families. Knowing they can benefit from such coverage is reassuring for both employers and employees.
Advantages for employees:
Group insurance has several advantages over individual insurance, including:
- Opportunity to obtain basic coverage for all without evidence of insurability.
- Significantly lower costs.
- Cost sharing with the employer.
Advantages for employers:
Offering group insurance provides employers with several advantages:
- Retain employees and attract potential employees.
- Maintain productivity
- Protect your most important asset, employees.
- Maximize employee’s after-tax salary: a benefit plan can cover health expenses with
pre-tax income, leaving more money into the hands of your employees. - Build Morale and loyalty
Cost Of Group Insurance
The cost of group insurance is affected by a number of factors such as:
- Demographics of the insured (gender, age, marital status)
- Salary and wages
- Type of business or industry
- Types of coverage purchased (health benefits, dental care, disability, etc.)
- Levels of coverage (co-pay, deductible, maximum limits, etc.)
- Claims experience of the group
Costs are also affected by effectiveness of your insurance advisor’s ability to negotiate with the insurer, the competitiveness of the insurance market, and the last time you went to market with your plan.
A St Andrews Insurance advisor can help you set up a plan that meets the needs of your employees at the most cost effect method.
How Can a St Andrews Insurance Advisor Assist You?
Reputation, Knowledge, Service, Responsiveness & Price
Experienced
Market Access
Plan Design
Competitive Placement With An Insurance Provider
Plan Utilization
Annual Renewal Review
Claim Audit
