What are group benefits?

Group benefits are employer-sponsored health insurance for business owners, employees and often for dependents.

A majority of Americans have group health coverage through their own or a family member's employer-sponsored group plan. Employers and employees can share costs and there are special tax incentives available to businesses that provide group health insurance.

Types of group insurance:

How does it work?

As an employer, you select a group health insurance plan and then invite your employees to enroll.
Typically, employers cover at least 50% of each employee's monthly premium, and can also contribute to dependent premiums. The remainder is paid for by the employee.

Products offered for groups:

Is it right for my business?

If you want to provide health insurance benefits and you're able to contribute toward employee premiums, group health insurance is the way to go.

Offering group health insurance can help you hire and retain the best workers, and the amount you pay toward employee premiums may be tax-deductible. Since no one can be turned down based on medical history, group coverage also protects workers or family members who might otherwise go uninsured.

How do I get started?

First, tell us about your company and employees. Then we'll show you health insurance quotes from a number of leading companies in your area.

Compare plan rates and benefits to find the best match for your needs and talk with one of our licensed insurance agents for personal help.

How does group insurance differ from Individual Insurance?

First characteristic is the coverage of many persons under one contract.

A master contract is formed between the insurer and the group policy owner for the benefit of the individual members.

In most plans the group policy holder is the employer. Employees receive a certificate of insurance that shows they are issued.

Second characteristic is that group insurance usually costs less than comparable insurance purchased individually.

Employers usually pay part or all of the cost, which reduces or eliminates premium payments by the employees.

In addition, administrative and marketing expenses are reduced as a result of mass distribution methods.

Third characteristic is that individual evidence of insurability is usually not required.
Group selection of risks is used, not individual selection.

The insurer is concerned with insurability of the group as a whole rather than with the insurability of any single member within the group.

Lastly, experience rating is used in group insurance plans. If the group is large enough, the actual loss experience of the group is a major factor in determining premiums charged.