Thursday, November 13, 2008

Group insurance article Written By Kyle J. Norton

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1. Group Insurance Part I
-
Understand Source of Groups
Many corporations will offer competitive packages, and that’s even a strategy in hiring and retaining employees. These competitive packages include group insurance to plans that provide individual retirement accounts or traditional registered pension plans, etc. In this article, we will discuss the source of group insurance

2.
Group Insurance Part II - Understand Fundamental Principles and Advantage of Gourp
As we mentioned in previous article, many corporations offer competitive packages, and that’s even a strategy in hiring and retaining employees. These competitive packages include group insurance to plans that provide individual retirement accounts or traditional registered pension plans, etc. In this article, we will discuss fundamental principles of group insurance, Group Insurance exists for the benefit of the complete group and therefore the individual member is not required to submit medical information. Here are five fundamental principles of group Insurance.

3. Group Insurance Part III- Understand Premium Rates, Experience and Pooled Basis of Group Insurance
Premium rate of group insurance are set by insurance companies based on the number of employees enrollment, age, sex and amount of insurance. The premium is charged at a monthly rate per thousand of coverage. All members in the group therefore will pay the same premium per month regardless of age or sex.

4. Group Insurance Part IV - Understand Benefits, Survivor’s Benefits and Taxation of Group Insurance
Generally, The contract may contain a survivor's benefit of 25% or more of the deceased employee’s salary, plus an extra percentage for each dependent child. Remarriage of the surviving spouse will generally eliminate the benefit.


5. Group Insurance Part V - Understand the Conversion and Waiver of Premium and Disability of Group Insurance
The law gives the employee the right to convert their group life benefit without evidence of insurability if
a)
Application of employees must be made and premium paid within 31 days of termination of the contract or employment.
b) Life insurance covers under old group insurance may be converted to any plan offered by the carrier including term insurance, whole life or other regular plans, indicated in the previous group contract.


6. Group Insurance Part VI - Understand Source of Groups
A accidental death and dismemberment is usually included as part of the life benefit. A principle is payable to employee beneficiary in the event of accidental death matching the amount of life insurance benefit. The coverage of dismemberment in event of dismemberment is payable to employee depending to the detail lists and each with its own percentage loss of the amount of life insurance benefit.

7.
Group Insurance Part VII - Disability Benefit Covered in Group Insurance Plan
Short term disability has become standard alternative to replace the unemployment insurance benefit due to sickness. It must cover no less than the minimum benefit under EI plan. Normally, it pays no less than 70% of employee pre disable income and it is no taxable. The waiting period has below characteristic...

8. Group Insurance Part VIII - Extended Health Care Benefits in Group Insurance Plan
Extended health care is a benefit that picks up where basic health plan leave off. It provides an extension for some benefits and provides other benefits not available through the basic plans. The benefits is a supplement of the basic plan benefits until the basic benefit has reached it maximum payout. the core benefits of extended health care plan includes...

9. Group Insurance Part IX - Advantage and Disadvantage of Contributory and Non-Contributory Group Plans
Under this type of plan, employees contribute a portion of group insurance premium.
1.the Advantages of contribution plan includes
a) Premium contributed by employees increasing over all premium resulting in more comprehensive group insurance plan.
b) the employees have their choices of choosing better group plans
c) Eliminate some
excessive claims, which creates high experience ratios causing increase of premium when group plan come to be renewed.

10. Group Insurance Part X - Advantages and Disadvantages of Association Group Plans
Association group is the group of individuals or companies with similar occupations such as dentists, lawyers, medical doctors etc. The association arranges group insurance for its member and individual member pays all the premiums. The master contract exists between the association and the insurer and individual member receives a certificate detailing coverage.

11.
Group Insurance Part XI - Benefits of Group Insurance Plan
Please note that some companies have combined contribution and non contribution plan depending of seniority of each employee. This type of plan automatically enroll new hired employee and junior employees( less 3 years of seniority) into contribution plan and he or she requires to pay for portion of premium from 10% t0 30% or more before they can enroll into non contribution plan usually with seniority of 3 years or more.

To be continued