Members of a company, labor organization, or any other type of organization can be covered by group insurance. This sort of insurance is usually offered as part of an employment benefit package. This type of insurance is offered to entice potential employee as it is generally more affordable than if an individual were to purchase and individual policy. All the members of this group contribute towards the policy, which can also cover the members’ dependants.
Group insurance tends to be less expensive than what each individual would pay for a solo policy. There are companies that absorb the entire cost of group insurance as an employee benefit, but others deduct the amount from employee payroll. The benefits experienced are the same across the board. Some insurance companies can sell additional benefits for individuals in this group with obvious higher deductions.
A good reason to use group insurance is because the “bulk” purchase of insurance is cheaper than an individual policy. There is also a benefit to belonging to a group which has better bargaining power with an insurance company. It can be said that there is some security in being many under a group policy especially when it comes to any claims or disputes. Most group insurance policies cover dependants while under an individual plan, you would need to add more to your premium to get your family covered. Any organization that takes on group insurance becomes attractive to the job market and members feel valued by the perk that comes from the cover for them and their families.
Group insurance can sometimes limit the individual. For instance, if you are under a group health care cover you could be restricted to a list of doctors and specialists. There have been cases where employers are too interested and seen to be intrusive in the personal health of their employees because the employer is fearful of paying higher insurance premiums.
When you get covered on a group insurance policy, there is no need for medical exams or history. Circumstances such as pre-existing health conditions that may increase the cost of your insurance premiums are not be taken into account. No matter your age, present health, weight, habits like smoking, you will receive the same cover as everyone else in that cover.
A group insurance policy can cover any regular insurance and is not limited to health, dental, disability, life, accidental death, long term care, critical illness and pension.
If you would like any additional information on group insurance contact Toronto Life Insurance Advisor Jack Bendahan or would like to receive a free group insurance quote .