Many organizations and companies offer their employees group insurance which offers financial stability to the employees and group members. It offers several benefits to the employees irrespective of their age, gender, socio-economic background or profession.
How Investing in Group Insurance is Helpful
Investments in group insurance schemes are beneficial for the employer as well as the employees. Here are some points on how group insurance can be helpful for both the employer and the employee:
Benefits to the Employer
Employees are the biggest asset for an organization or an employer. The benefits of group insurance schemes an employer enjoys are:
Building Employee Relation/Employee Retention
An organization that purchases a group insurance policy for its employees indicates that it values its group members. By doing so, companies retain their employees for a longer period of time. It also helps in improving the brand’s image. It helps in creating a sense of loyalty among the workers as well.
Cost Saving
A group insurance scheme covers a large number of people or a group of people. Hence, it reduces the risk factor and is more cost-effective as compared to purchasing individual cover for each employee. The insurance provider offers low premium rates as group insurance reduces the insurer’s liabilities.
Improved Productivity
A stress-free employee works more effectively as compared to a stressed one. By giving group insurance to the employees, an organization can earn more productivity from its employees. With group insurance schemes, an organization ensures that its employees are safe from any unfortunate events. It helps the employees work more effectively and dedicatedly.
Tax Benefits
Another most important benefit of group insurance for the employer is tax incentives. The employer may claim tax benefits under Section 37 of the Income Tax Act.
Benefits to the Employees
An employee is the backbone of any organization. An organization only functions smoothly if the employees are dedicated. Hence, it is very important for the employees to be happy. Here are a few points on how it is helpful for the group members:
Affordable Rates
Usually, it is difficult for an individual to buy insurance and renew it as the premium rates are quite high. In group insurance, the premium rates are low more benefits are covered. The premium is either very low or is completely paid by the employer and is kept completely free for the worker.
No Pre-requisites
While purchasing several other insurance plans, an individual needs to fulfil pre-policy entry requirements. For example, if an individual is purchasing a health insurance plan, it is mandatory through medical tests. On the other hand, a group insurance scheme does not have a set pre-requisite to be fulfilled.
Quick & Hassle-Free Claims
The process required to claim the insurance cover under a group insurance scheme is quite simple and quick. The claims of the employees are taken into consideration on priority. The employee does not need to face much hassle during the process.
Investing in group insurance is much helpful than individual insurance. A group insurance scheme benefits a larger number of people at the same time including the employee and the insurance provider.