We live in the age of uncertainty, so having a safety net to protect us from unforeseen events should be a priority for everyone. And while most of us are familiar with individual insurance, there is another equally important, if somewhat lesser known, option: group insurance.
The coverage of these policies does not benefit only one person, but an entire group with common needs and interests, such as the employees of the same company.
Do you know what types of group insurance exist and what are their guarantees and advantages? We tell you about them in this article!
What is group insurance?
Group insurance is a type of policy that groups together the same coverage for a group of people with a common bond, such as employees of a company, members of a professional association or members of a club or entity.
Unlike individual insurance policies, group insurance policies allow coverage to be managed and personalized according to the specific needs of the insured group.
In general, group insurance policies are taken out by companies or entities that want to offer certain benefits to their workers or associates and, above all, protect them against the possibility of suffering any type of occupational or even non-occupational loss. In addition, they can entail important tax advantages for both parties.
Types of group insurance
As we have already mentioned, there are different types of group insurance. Let’s see which are the most common ones:
Group health insurance
Group health insurance provides access to private medical services to members of the insured group. Generally, this policy requires a minimum number of employees to subscribe.
In this type of insurance, premiums are usually lower than in individual insurance and may include employees’ family members.
In addition, they allow companies to offer an attractive social benefit that contributes to talent retention.
Group life insurance
A group life insurance policy guarantees compensation in the event of death or disability of the insured.
This policy is renewed once a year and is commonly contracted by companies seeking to offer financial security to their employees’ families in case of unforeseen events. It is usually taken out as a social benefit.
Group personal accident insurance
This type of group insurance covers the risks arising from occupational accidents that workers may suffer during the performance of their daily work. These are very specific risks, related to the work activity itself. Sometimes these insurances cover 24 hours a day.
The coverages usually include indemnities for death, disability, temporary disability, hospitalization and travel assistance; and it is very common that this requirement comes from the sectorial agreement to which the company is attached. This insurance is essential for companies in which the workers carry out high-risk activities. For example, a construction company.
Group retirement insurance
Designed to ensure the well-being of employees at the end of their working lives, these insurances can be financed entirely by the company or in collaboration with the employees themselves.
Thus, upon retirement, policyholders receive an annuity or temporary income, which guarantees their financial stability.
Social welfare plans
Finally, social welfare plans are collective savings methods that provide workers with an income in addition to Social Security benefits in the event of retirement, disability or death.
They are certainly a very useful tool for planning the financial future of employees, and are often linked to pensions.
Advantages of group insurance for your company
Now that you know all the types of group policies, let’s talk about their advantages. Taking out a group insurance policy is not only advantageous for employees, it also brings multiple benefits for companies.
These are the most important ones:
- Less expenses. Group insurance premiums are usually lower than those of individual insurance. This means that, with this product, your company will be able to offer broad coverage without a large financial outlay. They are applied in economies of scale.
- Tax benefits. In addition, these insurances can provide some tax advantages to the company, and also to its employees.
- Staff satisfaction. Taking out group insurance improves employees’ perception of the company and this naturally increases their loyalty and satisfaction, reducing staff turnover.
- Customizable coverages. As mentioned above, these policies can be tailored to the specific needs of each insured group.
- Simpler and more agile management. On the other hand, it costs less time and effort to take out group insurance than to manage each policy individually.
Do you want to offer a group insurance to your employees? PIB Group Iberia works with many insurance companies and can help you find the best option.
We have many years of experience and are aware that the needs of each insured group may vary. In addition, poor policy selection can result in insufficient coverage or excessively high premiums.
Don’t worry! If you trust our professionalism, we will make sure to study each alternative and offer you the most suitable one. Contact us and rest assured about the protection of your equipment.
