Group Benefits

What are Group Benefits?

Group Benefits refer to insurance coverage that is provided to a group of individuals who are usually members of societies, employees of a common employer, or professionals in a common group. Group coverage can help reduce premium costs by pooling the risk among a group of people who are together for reasons other than obtaining insurance. Group benefits can also serve as a powerful incentive for attracting and retaining great employees.

There are several major types of group benefits, including:

Group Health Insurance: This type of coverage is purchased by an employer and offered to eligible employees (and often their family members) as a benefit of working for the company. A group health insurance plan is a key component of many employee benefits packages.
Group Life Insurance: This type of insurance is term coverage for a group of people, usually employees of a company, members of a union or association, or members of a pension or superannuation fund. Individual proof of insurability is not normally considered in the underwriting process; instead, the underwriter considers factors such as the size, turnover, and financial strength of the group.
Group Disability Insurance: This type of insurance provides regular income replacement payments to an insured member of the group in the event of an eligible disability resulting from illness or injury. Coverage is generally offered in two types: short-term disability (STD) or long-term disability (LTD).
Group Accident/Supplemental Insurance: Supplemental insurance is additional coverage that can be purchased to help pay for services and out-of-pocket expenses not covered by regular insurance in the event of an accident or other covered loss.
Group Dental/Vision Insurance: These types of insurance provide coverage for dental and vision care services. Organizations may work with group dental and vision experts to offer the best benefits to attract and retain top employees.