As the name suggests, group insurance plans are designed to offer insurance benefits to a group of people. Employers often purchase these group insurance plans to cover their employees. This includes professionals, co-operative societies, and co-workers. A majority of organizations have a set of policies to ensure the well-being of their employees. The sole purpose for employers to buy life insurance online is to provide a financial cover for their employees at a relatively low premium. Group insurance plans also provide the option of customization and are available for people of all gender, profession, age, social background, and so on. There are various benefits that come with group insurance plans. Here they are.
- Insurance cover
There are times when some employees cannot afford to buy life insurance online. Group insurance plans offer financial cover to employees simply because they are a part of an organization. The insurance cover is valid as long as they are continued to be employed there.
- Low premiums
As opposed to other insurance plans, group insurance plans offer financial cover to the employees at a relatively lower premium. This makes it convenient and feasible for the employees to pay the premiums regularly. However, the rate of premium depends on various factors like age and professional hazard.
- Rider options
It is possible to customize the plan and expand it by adding the riders at an additional cost. It is helpful for the employees since these riders provide benefits such as double accident benefits, loss of future payment, critical illness, and so on.
- Ease of payment
The problem of delayed payments of premiums does not arise in the case of group insurance plans. The premium automatically gets deducted from the salary or the bank account of the employee on a fixed date.
- Employee welfare
Group insurance plans protect the employee as well as their family members in case of emergencies. Also, providing group insurance builds a positive image of your business and helps with employee retention.
- Tax benefits
The payments made toward these group insurance plans by the employer are considered business expenses. This means the employer gets tax benefits on the insurance coverage offered to the employees.
In these times of uncertainty, group insurance plans are the best thing you can offer your employees.