top of page

Group Benefits - Options for Small & Large Businesses

Updated: Apr 20, 2023

Table of Contents:

Disclaimer: Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.

What are Group Insurance Benefits?

The greatest benefit of group benefits, insurance policies in particular, to employers is the goodwill you can develop with your employees. Companies with fewer than 50 employees are not required to offer insurance benefits, but providing employee benefits can help you attract and retain good employees. We have group benefit options to help you make sure your company’s overall compensation plan helps attract and retain high quality employees. Taking good care of your employees will benefit your company in the long term.

Group Health Insurance

Group health insurance is the most obvious choice for employers. A company with fewer than 50 employees is not required to offer insurance, but it is a great way to invest in your employees, even in a small company.

There are several companies that offer group health insurance, so you can shop around for a policy that fits your needs. Most group insurance plans offer a few options for participants, and they usually cover employees and their immediate family.

Having the right plan can give your business a competitive advantage as part of your overall compensation program. In fact, many people who would otherwise be qualified to run their own businesses may work for yours because of access to your benefits program. Let us help you find a program for you.

Group Dental Insurance

Group dental insurance plans can be a great added benefit for your employees. Just like health insurance, dental insurance is much less expensive when purchased through a group policy. The major difference is the coverage you can obtain.

To control dental treatment costs, most plans will limit the amount of care you can receive in a given year by placing a dollar “cap” on the amount of benefits you can receive, or by restricting the number or type of services that are covered. Typically, preventative measures, like cleanings and x-rays, are covered. The expensive parts of dental services, however, such as crowns or bridges may only be 50% covered while more routine services like fillings, extractions, etc. may be 80% covered

The best part of dental insurance is that it is inexpensive. You can offer this benefit to your employees with very little effect on your bottom line. Think about balancing your costs with the good-will you can gain with employees by including dental insurance in their benefits package.

Being protected by a dental plan and using it wisely is a necessary safeguard for your employees. Dental plans are designed to help you and your employees get the care you need at a reasonable cost. Because each person’s oral health is different, costs can vary widely.

Group Life Insurance

Group life insurance policies offer another cost-saving way to care for your employees. The coverage typically extended to each employee is low, but the cost to each individual of adding additional coverage is minimal compared to buying an individual policy.

Like an individual policy, group life insurance would pay out in the event of death. Each employee chooses their own beneficiary, so their family would be taken care of if something unexpected should happen. While individual life insurance policies require a medical exam, group policies usually do not.

It is also very inexpensive to extend a group term life insurance policy to all of your employees. Some policies may be portable, but usually coverage ends when an employee leaves the company. Administering a group life insurance policy is an easy way to show your employees you care about them and their families.

Group insurance plans are a great way to show your employees you care for them. Without access to group plans, many individuals could not afford to be adequately insured. The expense to your company is minimal, and the benefit to the individuals can be priceless.

Group Disability Insurance

The purpose of disability income insurance is to partially replace the income of employees who are unable to work because of sickness or an accident. At all ages, the probability of being disabled for more than 90 days is greater than the chance of dying. One out of every three employees will be disabled for at least 90 days during their working years, and one out of ten can expect to be permanently disabled prior to age 65.

COBRA Compliance

Imagine this: Without warning, one your employees terminates their employment with your company. They were enrolled in your employee benefits program including medical, dental and vision. Did you provide the employee and dependent(s) with an initial COBRA notice? Suddenly, you, the employer, are sued for failure to inform him or her of their rights under COBRA legislation. Did you provide the employee and dependent(s) with the COBRA Continuation Coverage Election Notice?

This is just one scenario that can play out in the face of COBRA. While this legislation was written with large corporations in mind, it is small businesses that face the most severe hardships should a mistake occur. A simple review of your needs or a quick audit of your current procedures can provide significant protection against these risks.

Executive Benefits

Employers with superior executives usually have two major concerns:

  • How do I reward them in a way that encourages them to stay with me?

  • How would I replace them should something happen?

There are several types of Executive Benefits policies, including:

  • Key Person

  • Buy/Sell

  • Deferred Compensation

Section 125 Plans

A Section 125 plan or, as it is often referred to, Cafeteria Plan is a benefit that allows employees to have some choice in designing their own benefit package by selecting different types or levels of benefits.

Employees can choose from insured benefits, a medical reimbursement account or a dependent care account. Employee contributions can be made on a pre-tax basis – before Federal, State and Full FICA, while qualified reimbursements are made tax-free.

Do you currently have a Section 125 plan through Northern Insuring? Log in below to submit a claim, check on your claim status, view your account balance, or review a list of reimbursement items.

Health Reimbursement Account (HRA)

An HRA is a type of personal savings account from which unreimbursed medical expenses can be paid. They are established by the employer for its employees.

Health Reimbursement Arrangements (HRAs) are plans designed to help employers and employees lower healthcare costs. They are employer funded arrangements that are often paired with high deductible health plans, although they can be paired with non-high deductible health plans as well. HRAs have considerable design flexibility for the employer and are a great added benefit for employees.

Medical Benefits

An unexpected illness or serious injury can ruin a family financially if they do not have some basic coverage.

Most insurance companies offer the same types of healthcare plans to all groups:

  • HMOs (Healthcare Maintenance Organizations)

  • PPOs (Preferred Provider Organizations)

  • POSs (Point of Service Plans)

  • EPOs (Exclusive Provider Organizations), and

  • HDHP/HSAs (High Deductible Health Plans/Health Savings Accounts) generally offer different levels of copays or deductibles to keep premiums within budget.

Employers must determined what coverage, premium, deductible and out-of-pocket expense will best suit the needs of their employees and their budget.

Group insurance is generally available to an entire assemblage of people, no matter what their health status.

At Northern Insuring Agency, Inc., we are here to assist you in finding a plan that can protect your employees while staying within your budget. Contact us today!



Commenting has been turned off.
bottom of page