Understanding Group Insurance Process

group insurance for employees

Group insurance is an old concept and has been opted mostly by corporations. Group Insurance in Canada has been one of the crucial parts of Employee Welfare Policies. Group benefits insurance policies can be purchased by social or professional groups. Common perception about Group insurance in Mississauga is that these plans are only for corporations. However, group insurance plans offer much more than that. Importance of insurance plans has increased with time, especially in the post pandemic era.

Companies in Mississauga are people centric. They believe more in actions than compensation. During and post pandemic the majority of people started working from home. Working environment is different and this has impacted the mental and physical well being of people. Companies are shifting towards group insurance plans that can provide a strong financial safety net for employees and keep them motivated. Expected coverage is of mental as well as physical health. Group Insurance plans are perfect and offer extensive coverage that provides a safety net for employees and their families. Any type of insurance that provides members of a group equal coverage irrespective of their age, community, gender, employment status or financial background comes under Group Insurance in Mississauga. It could be a formal or social group.

As per Canadian Government every company has to provide some mandatory benefits to their employees and insurance is one of them. As per government insurance rules, an employee must get an insurance benefit of 55% of their average insured weekly income. An employee can avail a benefit period of maximum 14 to 45 weeks. Group insurance benefits period depends upon the unemployment rate of the concerned region. Along with that it also depends on racked up employment hours of the employee in the coming 52 weeks or time gap from their previous claim, whichever is the shortest is considered.

Types of Groups:

Different type of groups that can opt for group insurance plans are:

Formal Group: As name suggests employee-employer comes under this type of group. If members of the group are connected professionally then they come under formal groups. Employers purchase policy on behalf of their employees.

Informal Groups: Any type of cultural or social organizations can also purchase group insurance on behalf of their members. The only compulsion is that the group must have a common bank account or use the same credit cards. Informal group can be a family or community group.

Pros of Group Insurance:

  • Premium paid for group insurance is lower as compared to individual insurance.
  • In group insurance risk is equally divided among all the members and thus reduces liability on group insurance providers.
  • Group insurance provides cover to each employee irrespective of their salary bracket and without giving extra load on employer pocket.
  • Insurance gives assurance to the members that the group values them and motivates them to be part of the group.
  • There are group insurance plans for small businesses that offer family of the employee along with employees like children, spouse and sometimes parents.
  • Provider as well as group members can claim benefits over tax while filing tax returns.
  • Coverage offered in group insurance is irrespective of the package of a member. All get the same coverage.
  • It is possible to convert group insurance into an individual insurance plan after leaving the group. Members have to pay additional convenience fees while doing so.
  • For getting cover under Group Insurance in Mississauga, no additional paperwork or health check up are required. However for individual insurance you have to get a health check-up or other formalities prior to getting any insurance policy.  

Types of Group Insurance:

  1. Group Health Insurance: It is the most common type of group insurance. Any small or big organization can purchase group insurance in Mississauga irrespective of the number of employees. This insurance provides financial security to employees along with their families and easy access to various healthcare facilities.
  2. Group Term Life Insurance: Mostly opted by companies working in the labour industry. It provides life coverage to employees in case of any mishap while working in a hazardous environment. Term insurance plan is the most common type of life insurance.
  3. Group Personal Accident Insurance: This insurance provides additional safety to employees. It does not impact the increased premium cost for employees.
  4. Worker Compensation Insurance:In Canada, employers have to register under the Workers’ Compensation Bureau of their provision and as per their industry they have to pay Worker Compensation insurance premium. This insurance saves the employer in case any employee suffers any injury while working. Major advantage is it saves companies from any type of legal actions or lawsuits from employees because of injuries. 
  5. Public Liability Insurance: This insurance protects companies from any type of lawsuits by any other party or company like clients or competitors. It covers any type of damage to their product or property because of your company.
  6. Travel Insurance: It is used for international travels mostly. Group of people travelling together can be insured under one policy. Minimum members vary from policy to policy.

Who is Eligible for Group Insurance in Mississauga?

  • Member requirements vary from plan to plan. Some plans have a minimum requirement of 10 members and some have 50 members.
  • Members must be 18 years or above.
  • Some plans allow a maximum age of 60 years and some allow up to 80 years.
  • It is compulsory that all the members are fulltime and active members.

Group insurance acts as a safety net for members of a formal or social group. It is a more sorted and hassle-free way of getting insured. It is less risky for insurance providers and beneficial for all the members. One of the reliable insurers of Mississauga is Insurance Gully. The company provides specialised and diversified insurance plans for various types of visa holders at affordable cost. Personal attention is given to every client and the most suitable plan is recommended as per clients need and budget. Their experience and expertise in the insurance sector will help companies in selecting the most suitable group insurance type and plan that suits company’s requirement and premium budget.