A group plan is an insurance plan for a group of people. The group can be the employees of a company or members of an association.
A group plan is an insurance plan for a group of people. The group can be the employees of a company or members of an association.
Employees/ Members can enjoy a considerable life cover at a low cost.
It can be purchased by the employer for the employee.
It helps in enhancing employee satisfaction and thus, retention.
When paid by the employer, they can claim tax deductions.
There are two types of groups, namely, employer-employee and non-employer-employee groups. Most of the time group insurance plans are employer-employee groups. In the case of non-employee-employer groups, the members must formally assemble and engage in a common economic activity. A group formed with the intent of reaping the benefits of a group plan won’t be recognised.
No, they cannot. These groups are exclusively for individuals part of a group.
A formal group should have a minimum of 10 members, whereas an informal group should have at least 50 members.
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