What Is Small Group Insurance?

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Insurance is a hot topic in America and around the globe. Whether we’re comparing health insurance plans, starting early research on life insurance, or insuring our vehicles or homes, it’s something we all have in common, regardless of the type.

Because of the importance of risk management, insurance is no small business. The US’ insurance industry net premiums written in 2019 reached a whopping $1.32 trillion.

Auto, commercial, and homeowners insurance accounted for $637.7 billion. The life insurance sector contributed $678.7 billion. Each type of insurance plays a massive role in the umbrella of managing risks, including today’s subject—small group insurance.

Here, we talk about small business group insurance—a lesser-known but equally worthy topic to discuss and consider. What is this type of insurance, and is it available to you? Who are the ideal candidates?

We answer all your questions below.

What Is Small Group Insurance Exactly? How Does It Compare?

Small group insurance is what it sounds like—insurance for a small group of people rather than an individual.

Why would you ever get group insurance rather than personal? Often, small businesses use this type of coverage for their staff members. A specific employer can opt for this plan, and their employees would be covered as a group.

Working with a group insurance provider has several benefits to small businesses. They can offer different types of insurance to their employees, all from one place—life, health, supplemental, etc. It’s also tax-efficient, affordable, and attractive to prospective employees. This offering gives your business a competitive advantage against other companies that don’t provide it.

Plus, insured employees are happier employees; therefore, business owners can consider group insurance like a business investment.

Ideal candidates include any small business (less than 1,500 employees, depending) who want to provide an incentive to their employees; needs a competitive advantage; and have the funds to support current and future premiums.

Where Do You Get Small Group Insurance?

If you are an employee, you would receive small group insurance from your employer. If you are a business owner, you would get a policy from an insurance provider and offer your employees the option.

As a small business owner obtaining group insurance for the first time, it’s common to consult with your staff first and see their insurance needs. Get a feel for the type of coverage they are looking for and use this information to select a plan that makes sense.

You’ll also need to consider your budget (accounting for premium amounts) and research your providers to find the best fit. Seek out online reviews and trustworthy recommendations. Find a small business group health insurance provider that offers affordable solutions, works with vetted insurance carriers, and makes the process easy.

More Questions? Speak With a Provider Today

Small group insurance is a wonderful option for many.

Even if you don’t think you need it today, you might consider it down the line. Regardless, group insurance is something worth knowing about, as it can be very beneficial (and probably more common than you’d imagine).

If you’re ready to learn more, consider reaching out to us at FutureWise for all your group insurance needs.

Click here for a free quote, or call 877-763-0555 if you’d like additional information.