Benefits of Group Insurance Plan

As we mentioned in previous article, many corporations offer competitive packages, and that's even a strategy in hiring and retaining employees. These competitive packages include group insurance to plans that provide individual retirement accounts or traditional registered pension plans, etc. In this article, we will discuss the benefits of group insurance Plan.

1. Benefits for employers

a) The insurance provided by company helps to reduce turnover,attract a higher class of employee and employees loyalty. 
b) Provides for continuity of coverage of any new employees had previous coverage, making the employer more competitive in the labor market. 
c) Creates a greater degree of employee security and efficiency. 
d) Employers have a obligation to provide affordable employee protection. 
e) Premium is easy to project and to adjust. 
f) It is a deductible expense.

2. Benefits for employees

a) Employees received free insurance coverage without paying any premium when funded by the employer. 
b) Do not require evidence of insurability on the larger plans. 
c) Provide for employee security for employees dependents in the event of death, disability or critical illness. 
d) Life insurance in the group insurance can be carried over to a new group policy or individual plan upon termination.

Please note that some companies have combined contribution and non contribution plan depending of seniority of each employee. This type of plan automatically enroll new hired employee and junior employees( less 3 years of seniority) into contribution plan and he or she requires to pay for portion of premium from 10% t0 30% or more before they can enroll into non contribution plan usually with seniority of 3 years or more.