Group Insurance Coverage

Group insurance coverage is an insurance plan usually set up by companies for their employees or organisations, such as churches or unions for their members and may include health insurance, disability insurance, life insurance or accident insurance. Individual members or employees are covered by the plan which is owned by the organisation and dependants may also be included. Premiums for each member are often much lower than they would be for individual insurance and are very often not risk based. i.e. all members contribute equally.

Group insurance coverage varies considerably between companies which may have plans suitable for very small (less than 10 employees) to very large companies with custom plans often available. The premiums may be covered entirely by some companies as a benefit for thei remployees while others will deduct premiums automatically. group health insurance may have some restrictions on the physician that can be used and the type of medical treatment covered. Most policies cover emergency hospital treatment as well as routine procedures and extended hospital care. Dental care and provision of spectacles may be included but policies vary on which procedures are allowed. Mental care may also be included.

Premiums can vary and may rise if some group members need high cost treatment. Not all group insurance coverage specifies a medical examination to become a member so someone with an existing condition may be allowed treatment, unlike most other types of health insurance, This can however result in higher costs for the other group members.

Advantages and Disadvantages

In general premiums will be lower than if the member took out an individual policy however there are some disadvantages. As noted above premiums can rise unexpectedly if some members have expensive treatment and the other members of the group have absorb the costs. Choice of treatments and physicians can be restricted by limiting members to an approved list of physicians. Companies who provide group insurance have been known to impose ‘no smoking’ or other policies in an effort to keep the cost of premiums low and many people might be uncomfortable with their employers taking more interest in their lifestyle.

Cover for Members Dependants

Not all group insurance plans cover spouses and dependants of the group member.

Conclusion

Group insurance coverage is a good option if your employer, church, union or other organisation offers it. As with all insurance plans be sure to check exactly what is included and be prepared to have a top up plan to cover any deficiencies. Premiums are usually lower than you would have to pay if you took out a similar plan as an individual and if cover is offered for dependants this can be a very good way to cover the family at a reasonable cost.

Best Insurance Coverage Information