Group Health Benefits

Group Health BenefitsMost employers provide some form of life and disability insurance to cover their employees. Benefits are relatively inexpensive to obtain at group rates available to the employer and are usually based on the employee’s salary.

Group-Term Life Insurance

Group life insurance is generally tax-free to the employee to up to┬áspecified amounts; special Internal Revenue Service tables apply if the amount is greater. Typically, the employer provides a benefit of one or two times annual salary and pays the full cost of insurance premiums. The Form Group Life Insurance/Accidental Death and Dismemberment Insurance Coverage Request is an application for group life/accidental death and dismemberment insurance that also provides for employees to purchase life insurance coverage for dependents through payroll deductions. The accidental death benefit is an additional payment that the employee’s beneficiary will receive if the employee dies accidentally; this type of provision is common in insurance policies and is also referred to as double indemnity or AD&D.

Offering employer sponsored health insurance benefits

Offering employee health insurance benefits both employer and employee in numerous ways. Providing both financially and covering medical expenses provides immense psychological satisfaction to the employee. As a business decision, offering insurance makes sense both in regard to employee relationship and economically.

If a small business has between two to fifty employees, small business health insurance will spread insurance risk and offer a wider range of coverage for all employees. Most small business health insurance is 100 percent tax deductible, and all you need is two full-time employees, even if one person does not want health insurance.

The employer pays around 50 percent of the premium while the employee pays 50 percent from their paycheck, depending on the insurance company and plan chosen. Employee portion can be from $1,600.00-$2,500.00 per year, or $133.00 – $208.00 per month. For many, this benefit is an incentive to be productive and loyal to the employer.

Most businesses opt for group insurance. Group insurance offers choices within the plan for the individuals within the group. One person may have a wife and children while another employee may be single. Each company offers individualized plans to satisfy most of the needs of the participants within the group. When devising an insurance plan, factors taken into consideration include age, geographical location, health status, smoking and other factors.

Two of the biggest reasons why having small business health insurance are that 60 percent of employees in the US get their insurance from their work. Statistically, they tend to be more loyal to their employer and are happier with their job. Second, the employer has lower staff turnover, they tend to attract employees that are more qualified, they save money in taxes and employee health costs.

Types of Voluntary Benefits

The following are some of the typical voluntary benefits that can be made available to employees:

  • Auto Insurance
  • Homeowners Insurance
  • Life Insurance
  • Long Term Care Insurance
  • Group Disability Insurance
  • Vision Care
  • Accident/Disability
  • Dental Plans
  • Hospital Indemnity
  • Short-Term Disability
  • Mortgages and Home Equity Loans
  • Legal Services
  • Moving Services
  • Pet Insurance
  • Legal Services