Securing proper health insurance is one of the most important expenses that people have. Unfortunately, not everybody knows how to find the policy that’s best for them.
Although many are unaware of this option, small group insurance is a great alternative to traditional forms of coverage.
Not quite sure how to begin? We’ve got all the info you need to keep in mind.
Let’s take a look.
So, What Is Small Group Insurance?
As the name suggests, group health insurance involves providing coverage to multiple individuals as opposed to a single person. In general, this typically involves establishing coverage for a handful of employees at a company.
But, it could also apply to people who are members of an organization.
In terms of overall cost, group insurance policies are often cheaper than independent coverage. This is due to the fact that insurance providers experience less inherent risk because it is spread across multiple people instead of the actions of a single party.
How Does It Work?
A single policyholder purchases a group insurance plan, and this is often a company owner or president of an organization. From here, this person then offers the group insurance plan to a number of other individuals.
When presented with the coverage, employees or members have the option to either decline or accept.
Many insurance providers require that a certain number of people within the group accept the coverage in order for it to be valid, so it’s in the company or organization’s best interest to choose a plan that comes with plenty of value.
What Benefits Does It Have?
As previously mentioned, those who purchase a group insurance plan will be able to receive coverage that would either be unavailable for independent purchase or far more expensive.
Additionally, those who are insured in this manner may have the option to extend coverage to immediate family members. In an ideal scenario, an employee or member of an organization could secure a thorough, low-cost health insurance policy for themselves and their family.
There are plenty of benefits for employers, though. For example, the money that a business owner pays toward their premium each month on a group health insurance plan is generally tax-deductible. Additionally, many small businesses are eligible for the small business healthcare tax credit to help further save on costs.
These tax benefits also extend to employees. The money that employees put toward their health insurance premium each month is considered a pre-tax amount, which will help reduce their total amount of taxable income for the year.
Choosing The Right Coverage Can Seem Complicated
But the above information will make the process far smoother. From here, you’ll have no problem making the decision that’s best for you regarding small group health coverage.
Want to learn more about what we have to offer? Feel free to reach out to us today and see how we can help.