Insurance Overview

Insurance, in its simplest form, is an agreement between two parties, which transfers the risk of an unknown event or loss from one party to another, in exchange for a payment or premium.

Group insurance is one of the most sought after parts of a benefit package an employee looks for when evaluating where to go to work.  Though we don’t believe benefits are the only thing a prospective or current employee looks for, we do believe that it is an important component in the individuals decision making process.

The insurance part of a “group benefit package” may consist of several types of insurance products:

Group insurance benefits offer several advantages both to the employer and employee:

Employer Advantages:

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May help to attract new employees when you need to expand.
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May help retain good employees, thereby reducing employee turnover.
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May help employees who get sick, offset the high cost of health care and return to work faster.
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Group insurance premiums paid by the employer may be a tax deductible business expense.

Employee Advantages:

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The insurance plan may be issued on a guarantee basis - meaning all employees will be covered.
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The plans may be less costly if purchased as part of a group plan as opposed to an individual plan.
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The portion of the premium paid for by the employee may be set up through a "cafeteria plan" creating a possible tax advantage to the employee, as well as the employer.
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Group health benefits are generally more comprehensive than an individually purchased plan.

Insurance benefits have become more complex and come in a variety of shapes, sizes and styles.  Creating the right mix of insurance benefits in your overall compensation package is extremely important in managing the bottom line.  The goal is to try and create the right mix of benefits to attract, retain and motivate your employees to create a true positive effect on your company's bottom line.

Have a Question? Feel free to call us at 405. 720.0333