When you hear "benefits" you likely think "employee benefits." These benefits typically provide coverage for doctors check-ups or even hospital visits. In the insurance industry we have the addition of group life insurance, long-term group disability insurance and group dental insurance. All of which fall under the benefits category and are of great use for businesses.
Group Life Insurance Information
Group Life Insurance is a life insuring product that is used to protect a group of people, rather than using individual policies to cover specific people. Group policies are typically written to cover employees of a company or members of an organization.
Joining a group life insurance policy is at your discretion, however it is extremely inexpensive and in some cases, free. Coverage provided is modest.
By joining a group life policy, employers are able to receive coverage on a wholesale basis, meaning coverage is much less expensive than writing individual policies.
Policy premiums are based off the risk of the group as a whole. Each individual may pay premiums, or the policy administrator may pay in its entirety. Benefits paying out will vary depending on the policy written.
Group Long Term Disability
Long Term Group Disability is a type of insurance in which a group pays premiums in case a group member becomes disabled for an extended period of time. The benefit period for a (LTGD) can be two years, five years, ten years at age 65 or for the lifetime of the disability.
These plans will provide an employee with around 60% their working income, with a specified maximum per month. LTGD's help attract quality employees and are tax deductible to the business.
Group Dental Insurance
Group dental insurance is typically grouped into three categories; Indemnity, Preferred Provider Network (PPO) and Dental Health Managed Organizations (DHMO).
In a group indemnity plan, the insurance company will pay the dentist a percentage of the cost of services. This excludes co-payments, waiting periods and deductibles.
Dental Health Maintenance Organizations contract dentists to give the insurance company's customers discounted maintenance treatment, while covering major dental work near the start of the policy period.
Preferred Provider Networks are organizations governed by dental providers. The organization has an agreement with an insurer to provide dental insurance to their clients at a low rate.