Nowadays, a large number of organizations face a common problem of employee attrition. However, providing a group insurance plan to employees is the best way to deal with this type of issue. In this day and age, a group insurance plan has become an important part of the employees’ benefits package.
A group insurance policy is a specified life insurance product that is specially designed to provide coverage to a large group of people under a single policy. In a group insurance policy, the owner of the policy is the organization or the employer and the policy provides coverage to the members of a particular organization or employers.
Below we have outlined several benefits for employers in providing group health insurance to their employees.
First employer benefit of group life insurance is it helps deal with employees attrition. According to the experts, buying a group insurance plan for the employees is beneficial as it shows the employer’s concern for the employees. It makes them feel valued as their health concerns are being taken care of. Moreover, it also helps an organization attract more talented employees.
Second employer benefit is asset management and professional expertise. A group insurance policy that incorporates the features of annuity and gratuity are managed by professionally experienced insurance experts. Thus, the return on investment is greater for the members who are covered under the group insurance plan.
Third employer benefit in providing group health insurance is increased productivity. Having group health insurance from their employer helps to create a stress-free environment for the employees and helps them to nurture productivity which in turn benefits the employers by meeting their short and long-term business objectives.
Fourth employer benefit is the fact that providing group life insurance offers enormous savings to employers.
The group life insurance provides coverage at a subsidized rate. Thus, this plan benefits the group of individuals who cannot afford to have a standalone life insurance policy. According to the risk factor of the entire group, the premium amount is calculated by the insurance companies. The premium payment can be contributed in one of the following two ways:
• The entire premium amount is paid by the organization or the group owner who owns the policy for their employees; or
• A part of the premium amount is paid by the insurer, or the employer, and the rest of the premium amount is paid by the employees or members of the group insurance plan. Thus, as the best of both worlds, the group insurance plan not only benefits the employees but also saves the out-of-pocket cost of the employers.
Tax Benefit. The amount contributed by the employer towards the group life insurance plan is eligible for tax deduction under the Income Tax Act. Moreover, the employees who are members of the policy can also avail the tax benefit.
Employers seeking expert guidance regarding securing group life insurance for the employees of their small business or company are urged to contact Abbot Benefits Group, found online at https://www.abbotbenefits.com and 281-374-7577. For 40 years, Abbot Benefits Group has been providing personalized service in Texas to assist employers in providing group life insurance and medical insurance to the employees of their small and medium businesses.
The success of an organization majorly depends upon the productivity of the employees and by offering a group life insurance plan as a part of an employee benefits package the company can create a secure environment for their employees and can lift the overall productivity. Contact Abbot Benefits Group today at https://www.abbotbenefits.com or 281-374-7577.