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5 Key Benefits of Employer Group Insurance

Have you heard of employer group insurance? It’s a form of health insurance businesses provide eligible employees to safeguard their mental and physical health. Group insurance yields several fantastic benefits for the company, the employee, and the employee’s family. Curious to know more?

Here’s a summary of 5 major benefits of employer group insurance and the stakeholders they impact.

1. Low Premiums through Bulk Signups

If you’re familiar with the concept of risk diversification, chances are you’ll understand why the premiums on group insurance plans are low. Companies that take out group insurance agree to provide eligible staff with health insurance coverage in the event they get sick and require medical attention.

The more staff a company signs up for employer group insurance, the lower each employee’s monthly premiums will be. Why? Because the risk per employee to the insurance provider falls as the number of employees registered for group insurance increases. This benefits both the company (because their costs decrease) and the staff (because a lower portion of their wages is used to cover health insurance premiums).

2. Tax Exemptions

According to section 79 of the Internal Revenue Code, companies that take out group insurance amounting to $50,000 or less are exempted from paying tax on it. This is particularly beneficial to businesses in the growth stage that struggle to raise capital and survive by keeping their costs as low as possible.

Employees also stand to benefit from this law if the costs saved by the company result in better facilities for them. For example, a startup that invests money saved from group insurance tax exemptions on purchasing faster computers is likely to bolster staff productivity.

Coins in a plant pot

3. Increased Employee Productivity

Healthy employees are productive employees—and one of the best ways to improve your staff’s health is through group insurance. Depending on the plan you choose, your staff’s mental and physical well-being will improve if they’re able to readily access important medical services like professional counseling. This will cause them to experience greater job satisfaction and bring their best selves to work.

Subsequently, your company’s profits will rise because your staff will have the physical and mental capacity to get more work done in less time.

If you’re unsure how to select an employer group insurance program that provides adequate coverage for your staff’s mental and physical health, we recommend reaching out to a seasoned insurance agent.

4. Coverage for Employees’ Dependents

Imagine walking into work one day and learning your employer is offering group insurance to safeguard your health. Now imagine the insurance policy also covers your children. We’re willing to bet you’d feel fantastic!

If you provide health insurance coverage for your staff’s dependents, chances are they’ll feel more satisfied working for you. This will generate loyalty to your company and incentivize your staff to put their best foot forward at work. Moreover, it’ll lower the frequency with which your staff calls in sick.

5. Better Talent Recruitment

Want to attract the best talent to work for your company? Why not provide employer group insurance as a job perk? Signing up for and advertising group insurance on job postings will show job seekers you’re the type of company that cares about its staff’s health. This will entice them to apply for roles at your company, even if your remuneration isn’t as strong as other companies.

The more comprehensive your group insurance plan is, the more likely you’ll be to attract top talent to work for your company. We recommend thinking carefully about the kind of industry you’re in if you want to market group insurance as a job perk optimally. For instance, if you’re trying to recruit people for physically demanding roles, advertising the fact that your company provides physical health benefits through its group insurance program will attract job seekers.

Covered California Certified Agent Helps Companies Sign Up for Comprehensive Group Insurance Plans Without Exceeding Their Budgets

A group of staff laughing in an office

Keen on speaking with a top insurance agency in California about signing your business up for a cost-effective yet comprehensive employer group insurance plan? If so, our team of insurance agents at Covered California Certified Agent is ready to assist you.

We help businesses review group insurance options based on their budgets and their employees’ needs. Our experts will help you decide what level of coverage suits your staff and guide you through the process of receiving federal tax credits. In addition to businesses, we help individuals browse and apply for dental insurance as well as individual health insurance in California.

Experience all the benefits of group insurance highlighted in this article by dialing 800-771-7653 now to speak to one of our insurance agents about taking out employer group insurance for your business.