Group Insurance Benefits ExplainedGet the details, guidelines, pros and cons, and future outlook of Group Insurance Benefits from the specialists

Group Insurance Benefits Companies

Group insurance benefits are sponsored (or in simpler terms, purchased) by employers, trade associations, labor unions, multiple employer groups, credit-debtor groups and lodges. When one of these entities enters into an agreement with an insurer, they are issued a master policy and the individuals participating are issued a certificate of insurance (COI) and an outline describing the benefits. To better illustrate this, with an individual policy, the agreement is between the individual and the insurer. With a group policy, the relationship is between the sponsoring organization and the insurer.

Types of group insurance benefits include medical, dental, vision, life, long & short-term disability and long term care coverage.

Depending on the agreement between the sponsoring organization and the insurer, these benefits can be extended to just the employee or may include coverage for their dependents.

Frequently, the benefits provided under group contracts are obtained at a far better rate than the employee could obtain on their own. Also, the benefits provided under these contracts are more extensive and have higher benefit maximums than do individual policies.

Since there is normally no medical information asked of the individual participants, some people might be able to get coverage under the group umbrella when they would be denied coverage because of pre-existing conditions or other factors if they applied for an individual policy.

However, group policies normally contain a provision excluding pre-existing conditions and state when a condition will no longer be regarded as pre-existing. Usually, the time line on a pre-existing condition is six months. This includes the three months prior to the effective date of the coverage and the three months after the effective date of the coverage. In order to be labeled as pre-existing, the participant must have had treatment for the condition during that first three-month period.

The area of group insurance benefits is a large one and there is much to discuss. In this blog we will discuss the details, guidelines, pros and cons, and future outlook of group insurance benefits.

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