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Understand the Advantages of Group Insurance

People often ask what the benefits of group insurance are. It really depends on your point of view. There is the point of view of the company that has group benefits for its employees and, of course, there is the point of view of the employee who receives benefits. Group insurance can be divided into many subcategories. For the discussion in this article, I will analyze the two points mentioned and discuss the general benefits of group insurance from each of these points of view.

Group insurance from the employer's point of view

In addition to wages or hourly wages, employees have traditionally been offered benefits. Value-added services offered to employees after entering permanent staff were considered, usually after a waiting period of three or six months. Over the last thirty years or so, this insurance has expanded from basic prescription drugs and dental insurance to short- and long-term disability, emergency care, and now even floating vacations. Group benefits have been used to attract and retain good employees.

In recent years, these benefits have been more like expenses for employers and they no longer want these additional expenses. The cost of group benefits is just one reason many companies have started to "hire" workers. They want to set their costs per job or per hour. Today, the business world has become very competitive. Much has changed.

Group insurance from the point of view of the employees

Employees love group insurance. Why not? The employer pays at least half of the costs, and in some cases, the employer pays 100% of the costs. An employee is more comfortable knowing that most of his or her prescription drug and dental costs are covered. Frankly, group insurance Singapore encourages people to take better care of their health. Unfortunately, higher requirements mean higher costs, and many companies are now considering where the benefits fit in their "compensation program."

Additionally, employees with health problems are generally automatically enrolled in group coverage without the need to provide medical evidence for coverage. This is a great advantage for them. I will say that group benefits as they were known in the past are gradually disappearing. It is now estimated that 60% of people in secondary and tertiary education will not have group insurance benefits in the future.

The good news is that several insurance companies have started to specialize in paying just one person. There are some restrictions, but group benefits for one are already available. In addition, there are also employers who use health care bills to fill the gap that group insurance has filled. However, this is a topic that will be covered in another article.

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