By getting insurance coverage through a provider on a “wholesale” basis for its members, the coverage costs each individual worker/member pays, is much less than what they would pay to purchase an individual policy. Those receiving coverage may not have to pay anything “out of pocket” for policy benefits or they may elect to have their portion of the premium payment deducted from their salary/wages.
Certain Benefits of Group Insurance:
- Higher employee satisfaction and employee retention for the employer.
- Lower premium costs because of higher volume.
- Higher chance of getting pre-existing conditions covered (this is great for people already having health issues and cannot get insurance individually).
- An option of carrying on with insurance without change in policy even after an employee retires or quits job.