What are group benefits? What are all the types of benefits that fall under this umbrella? How can you know whether your business can afford to offer them?
What are Group Benefits?
Group benefits refer to insurance that covers a group of people. They could be employees of a certain employer, society members, or professionals with a common group (e.g., a guild).
There are a number of reasons why group benefits are popular. First, the costs tend to be lower than other types of policies because the insurance provider is able to spread their risk across the entire group of people covered under the policy. Additionally, group benefits can be helpful in employee recruitment and retention efforts.
Group Health Insurance
A group health insurance policy is purchased by you, the employer, and offered to eligible employees as a benefit of their employment. Often, it will also cover employees’ family members.
According to the Congressional Research Service, 54.4% of Americans (177 million) had private group health insurance as of 2020. While medical insurance can be a major expense for employers, it’s also one of the most sought-after pieces of a benefits package by employees.
Group Life Insurance
Another type of coverage that’s much more affordable is group life insurance. This type of coverage is one of the least likely to be obtained by individuals on their own and can also be tricky to qualify as a single applicant. Offering a life insurance program that is employer-paid can be hugely helpful to your employees and their families if a worst-case scenario should happen.
Life insurance can help your employees to protect their loved ones’ future, cover immediate high costs like the funeral and burial, and help with coverage of ongoing expenses like their mortgage, tuition, childcare, and more.
Group Disability Insurance
Long-term disability insurance is another affordable group plan that most individuals don’t take out on their own. Providing group disability coverage can help your employees in a variety of ways:
- Aids employees who are injured or ill and can’t work for long periods
- Supports those employees with a percentage of their normal monthly income
- Lowers the risk of employees taking a major financial hit
Group Dental and Vision Insurance
After medical insurance, dental and vision are the two most requested types of employee coverage. They offer employers an opportunity to earn good will with a lower investment.
Dental group benefits coverage can include:
- Coverage of regular exams and cleanings
- Reduce cost of less frequent scenarios like x-rays, fillings, etc.
- Sometimes cover more expensive procedures, depending on the plan
Vision group benefits coverage can include:
- Visits to the optometrist
- Coverage of regular eye exams to screen for serious problems
- Sometimes cover vision aids (e.g., frames, lenses, and contacts)
There are a few ways you can manage these plans. You could offer them as “voluntary benefits” (meaning you wouldn’t pay anything as the employer), or you could pay a little money to lessen employees’ premiums (i.e., pay $15 per month for their dental coverage and $10 a month for vision).
How to Offer Group Benefits and Keep Costs Affordable
Offering group benefits to your employees can be a significant help to them individually and benefit your business as you work to attract and retain good employees. Every business is different, and only you know what’s right for your workforce and bottom line.
NEWITY is proud to be partnered with Mylo to provide a range of insurance policies to our members. Mylo’s licensed advisors and leading-edge tech can help you find the right insurance for your small business, whether you’re interested in finding the right group benefits plans for your employees or need other coverage like a Business Owners’ Policy (BOP), cyber, workers’ comp, and more.
Plus, you’ll save any of those upfront brokers’ fees you may have experienced in the past. At no charge to your business, Mylo promises to:
- Get to know you and your business
- Recommend the exact solution for your needs
- Shop for you from over 100 top carriers for the best price
- Keep you feeling confident about growing your business
To learn more about Mylo and how they can help you discover the right coverages for your business, follow the link below.