Group Insurance Schemes
By Vivek Doraiswami
Employee Benefits typically refers to retirement plans, health insurance, life insurance, accident & disability insurance as far as the contribution of insurance is concerned.
There are several more Employee Benefits that companies offer ranging from vacations, company cars, stock options, education loans support, and so on. However, while such perquisites are manageable by Human Resources and Management in small and medium companies fairly easily, one of the key challenges is in providing Employee Benefits to cover Insurance schemes to employee groups which are small in size. The reason for this is typically as a result of the type of products that are offered to employer groups by Insurance companies in India and much the world over.
Group Insurance Schemes provided by Insurers are what employers in India buy to cover their employee base. In insuring groups, employers get favorable rates bundled with unique services and features which are by and large not available to small groups. The catch is that most of these schemes can only cover groups exceeding 20-25 persons. As a result small employers end up not covering their employees as they are unable to get covered under traditional group plans,. While the cost variance is marginal for small groups in going for group schemes versus individual plans to cover their employees, typically small employers do not have the bandwidth to keep track and keep seeking insurance covers on a one on one basis for their recruits. Bottom line, the lack of benefits can end up becoming a serious deterrent for hiring and retaining good employees, especially those who come from larger corporates where they have enjoyed great benefits.
Till such time as a strong online solution is presented, the small employer group will always find it a challenge to provide competitive benefits to their employees. While the cost to the company will remain a negligible component to overall costs, the value it can bring in the event of adversity will go a long way in creating a positive image of the company and its promoters and securing the well being of their employees.
The most popular group schemes in the market are as follows:
Group Medical Insurance - covers employees for fixed sums against hospitalization costs and can be extended to cover spouse, children and dependent parents)
Group Term Insurance - covers employees to provide death benefit to employees family/nominee for a fixed sum which can be based on salary, graded slabs or a flat sum across employees.
Group Personal Accident Insurance - similar to Group Term, this plan also covers employees to provide death benefit but only in the case of Accidental Death. A group accident plan also provides disability benefits as a result of accident.
Group Travel Insurance - As a lot of employers in India specially in the IT sector have frequent travelers to international client locations, such a plan makes it simple for HR to cover their employees with international medical insurance and also makes it very cost effective.
Group Gratuity - As this a fixed sum factored by employers and mandated by the law, the Gratuity scheme also provides for a life cover linked to the amount of money due. In the event of an employee dying, the dependents are due to be paid the Gratuity due even if under 5 years and this can become a serious burden for employers. Hence it is advisable to manage the money as well as life protection from insurers.
Prior to founding Zibika, Vivek has been the Head of Sales (Employee Benefits) at Marsh Insurance Brokers, the World's largest Insurance Broking Company with Operations in over 100 countries and revenues in excess of 5 Billion US$. With over 13 years of industry experience, Vivek has donned a wide variety of leadership roles at the Times Group, Reliance Life & International SOS. At Zibika, he is responsible for Building Alliances and managing Business Development activities. An MBA (Exec.) from IIM Calcutta, occasionally, you might find him tinkering with his car or trying out a tune on the guitar.
For more information on product offering and to understand how you as a small employer can look to providing such benefits to your employee group, you can visit us by at Zibika or send us a mail on info@zibika.com
Article Source: http://EzineArticles.com/?expert=Vivek_Doraiswami
Group Health Insurance Renewal Explanation
By Corinne Mitchell
You get your group health insurance renewal letter from your insurance carrier, you insurance agent or a letter from each of them. They notify you that your rates are going up.
Did you ever wonder what factors contribute to this increase?
Here are the 6 factors that can affect your renewal premium rates:
1. Change in Base Rate
The change in base rate reflects changes due to medical and drug prescription cost trends in your city. Increases in the cost of medical treatments and the cost of prescriptions in your geographical area will have an impact on your base rate.
2. Change in Age/Gender
These changes are based on the demographics of your group.
If your plan uses age banded rating, rates may increase as employees move into a higher costing age band. With age banding, the price brackets are generally broken into five year segments. So, the insurance company provides a different rate for each employee, based on the age of that employee. An older employee will pay a higher the premium than a younger employee.
Similarly, some plans set health insurance rates based on gender. If you have such a plan, changes in the number of women and men enrolled in your group plan will affect the premiums.
3. Group Size Adjustment
Changes in the number of employees enrolled in your plan can affect the cost of the plan's premium.
4. Change in Area Factor
Where the employees enrolled in the plan live influences the cost of the insurance. Premium amounts are base on the member's home address.
So, if you have new employees living in higher rated areas or you have employees that move into higher rated areas, the premium will increase.
5. Change in Industry Factor
The type of business you run - what industry it is categorized as - can also impact premium cost. Occasionally, an insurance company will re-evaluate their pricing based on industry. If they raise the rates for your industry, this increase will be reflected upon renewal of your policy.
6. Risk and Compliance Adjustments
These adjustments are based on the overall rate level change to the group and reflect the claim and use history of the group.
Please note that you may have a policy that does not take every one of these factors into consideration. Check with your insurance agent to see which ones your plan includes.
The good news is that these rate change factors can also result in lower premiums if changes to your group profile are favorable.
Corinne Mitchell has worked in the insurance industry for 10+ years and currently works with the Group Insurance Benefits Specialists at http://www.nicoins.com
Read her blog http://www.groupinsurancebenefitsspecialists.com/ for more tips.
Make sure you get expert advice and find the right coverage for you and your employees.
Article Source: http://EzineArticles.com/?expert=Corinne_Mitchell
Does Your Employer Offer Group Term Life Insurance - Why You Should Know
By Adam Hefner 
If you work in a high risk environment, your employer may be covering their employees with group term life insurance. Group life insurance itself is an obvious phrase, but what is term insurance? A term policy is one that only lasts through an amount of time determined prior to the coverage. Many insurance companies also offer extension plans for those who are covered by term policies.
The fact that the coverage ends at a specific time rather than lasting all the way until death is a benefit to some, as some insurers allow those who leave the "group" to pick up coverage immediately after leaving under their own terms.
This is a benefit because most insurers of group term life insurance do not give medical exams and the entire underwriting process is skipped. This gives people who could not get insurance before due to their medical record raising the price can be covered with no difficulties or hikes in premiums through a group policy.
Underwriting in these circumstances is simply examining the employee turnover rate of the company as well as amount of employees. This is not a rule, however, and some insurance companies may run things differently.
Anyone not sure about the ins and outs of insurance may wonder how term coverage varies from other types. After all, there is no need to know the information unless it's an immediate necessity, correct? A term policy is different from what's known as a "term policy," which is the type of coverage normally associated with life insurance that lasts indefinitely until death. Term insurance only lasts for the period of time the policy is for, which can be anywhere from 1 to 20 years.
It's more prudent for an employer to purchase group term life insurance because the premiums for term are much lower than permanent and it would be a waste to purchase a more expensive policy for employees who may only be at the company for a few years. A cheaper policy does not mean the coverage is any worse than more expensive coverage. It is only directly related to the benefit cash out rate of term policies, which ranges in the 1 to 2 percent range.
Anyone receiving group term life insurance through their employer should not be worried about the coverage. Being covered by a term policy is just as good as a permanent policy and will serve its purpose if there is indeed an accident.
For more valuable resources and information on group term life insurance then visit the #1 life insurance resource on the net at: http://termlifeinsurance2.com
Article Source: http://EzineArticles.com/?expert=Adam_Hefner
Dental Insurance, Family Plans - Find Low Cost Group Dental Insurance Plan
By Bryan Burbank
We want you to understand the importance of dental insurance and having a dental plan. Most people are not comfortable with going to the dentist but it is important to go and the cost can be high if you do not have dental coverage. When you go to the dentist on a regular basis then you are more likely to not have long term problems with your teeth. It is better to fill a cavity then wait until the tooth gets so bad that you need to get a root canal. In most cases the dental insurance plan will cover regular visits and they will cover x-rays and small procedures.
You may be able to get a group discount dental plan with your current employer you will want to talk to someone in human resources to find out if there is something available to you. You also want to search online for group and family dental plans because there are many places where you can get free quotes and there might be a cheaper option for you. It is important that when you are looking for a plan that you check and compare the policies so that you get enough insurance to cover you in time of need.
Remember that going to the dentist can be an uncomfortable thing to do but it can be a lot of cheaper if you have a good dental insurance plan that covers you. Finding a plan is easy but you want to make sure you compare the cost and the policy before you make a final decision on what insurance company to go with.
Find: Discount Dental Insurance Get Cheap: Insurance Quote Now Bryan Burbank is an expert in the field of Discount Insurance Article Source: http://EzineArticles.com/?expert=Bryan_Burbank Is Group Medical Insurance Affordable Health Coverage? Everyone wants to save some money and find affordable health coverage. If you are choosing between an employee benefit plan and individual healthcare coverage, most people assume group healthcare will be the most affordable option. Many people are offered group health insurance either through their place of employment or through their spouse's employment. In fact, for some families, the type of medical insurance offered by a company is as important to consider as wages. You can also find group health insurance through other outlets such as professional associations, student organizations and professional and civic groups. Some groups will provide group health insurance as an incentive for people to join. Is it true that employer health insurance is always the most affordable type of insurance? Surprisingly, no it isn't always the best answer. With group health insurance, everyone is generally accepted into the plan with no penalty for pre-existing conditions. While this can be very beneficial for those who have a health condition which makes them high risk, it's important to know that cost is distributed among the other members within the plan. Because of the guaranteed acceptance in this type of insurance plan, the premium rates may be quite high. Many times, however, employers will pay a portion of the medical insurance premium, therefore reducing the amount owed by the individual employees. Rather than blindly assuming a group health rate is more affordable health coverage than an individual policy, you need to examine carefully how much your portion of the premium is for both individual coverage and family medial insurance coverage. Employee benefit plans will also limit you to one or possibly two providers in many cases. If you choose an individual healthcare policy, you can often choose your provider from a much larger network of doctors, hospitals and clinics. You also have the choice of many different insurance companies when you purchase an individual policy, further expanding your provider options. Your care options on employee benefit plans may be more limited as well. With individual health coverage, you can choose things like dental, vision, chiropractic care, etc, that you probably will not have any control over in a group plan. Finally, group healthcare will often provide only one option for deductibles and copays. When you purchase individual healthcare, you make the decisions regarding deductibles and copays, which can lower your premium significantly. Group insurance does offer a significant benefit over many individual healthcare policies. By joining a group health insurance policy at your place of work, you will not need to pass a physical exam by a doctor to be accepted. Group health plans will also generally accept pre-existing conditions, which can be much more difficult with an individual policy. Group insurance policies can vary widely from state to state, as well as from company to company. Never make a blind decision when choosing your healthcare policy. You must compare provider options, coverage options, deductible costs, co-pay amounts and premium costs in order to choose the best, most affordable health coverage for your needs. About BestHealthcareRates.com Since 2001 BestHealthcareRates.com has helped thousands of families and businesses to find the most benefits for their insurance budget. The company is committed to exceptional service and strives to achieve 100% customer satisfaction and Affordable Health Insurance for all. For more information visit http://www.BestHealthcareRates.com or call 1-877-812-5111. |
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