content bg top

Glossary: Group Insurance

Employee Benefits - Employee benefits can be explained as different non-wage compensation offered to employees other than their normal salaries or wages. Some good examples of these benefits are group health insurance, group term life insurance, disability income protection, housing, retirement benefits, tuition, daycare, sick leave, reimbursement, vacation, profit sharing, education funding, and similar specialized benefits.

Types of Employee Benefits - Following are explanations of different type of employee benefits.

  • Medical Insurance - Medical insurance, as an employee benefit, covers the costs of physician as well as the surgeon fees, prescription drugs, and hospital rooms. Besides, dental and optical care might also be offered as a part of an overall benefits package. It might also be offered as individual pieces. Also, coverage can, many a times, include the employee’s family.
  • Disability Insurance - Disability insurance replaces whole or a part of income which is lost in case a worker is not capable of doing the job due to illness or injury. The disability insurance can be divided into two main categories namely, short-term disability and long-term disability.
  • Retirement benefits - Retirement benefits are funds which are set aside to avail people with a pension or income after the ending term of their career.
  • Life Insurance - Life insurance protects the family of the employee in case of his death. These benefits are paid in one single installment to the policy beneficiaries.
  • Paid time off - The paid time off is earned by the employees while working. The most common types of this employee benefit include holidays, vacation leave, sick leave.
  • Fringe benefits - Different types of non-cash payments are used to attract and hold talented employees. These benefits are referred as fringe benefits and include tuition assistance, child-care benefits, non-production benefits, and flexible medical or child-care spending accounts.

Flexible Benefits - Flexible benefit plans recognize changes in employee's needs by permitting them to choose their benefit type and allocate their contributions according to their priorities. These plans can also provide benefit options not usually available with traditional plans (e.g. the purchase of vacation days and elder care).

Group (Term) Life Insurance (GTL) - A type of insurance coverage offered to a group of people. This coverage will provide a benefit to the beneficiaries if the covered individual dies during the defined covered period. As with other types of group benefits, group term life insurance is generally cheaper than comparable individual policy coverage. For this reason, group term life insurance is often a key component in employee benefit packages.

Group Health Insurance (GMC) - An insurance plan that provides healthcare coverage to a select group of people. Group health insurance plans are one of the major benefits offered by many employers. These plans are generally uniform in nature, offering the same benefits to all employees or members of the group. Group health insurance helps companies identify and mitigate the risks their employees face. Rising costs of Healthcare have made it necessary for every employer to cover their employees and their families from financial instability that may arise in case of a hospitalization.

Group Personal Accident (GPA) - Group Personal Accident insurance (GPA) provides protection to employees of a company and their families in the event of death or disability due to an accident. Coverage can be limited to accidents related to their occupation only, or allow for any accident 24 hours a day. Covered events include:

  • Accidental Death
  • Dismemberment
  • Permanent Total Disablement
  • Permanent Disability Continental Scale Benefits

Benefit levels are based on a schedule that you define. Different employee groups may receive distinct benefit levels, or everyone may receive comparable benefits. Our underwriting experts know the options and issues, and can work with you or your broker to find cost effective solutions. You can be confident that you have provided compliantly and appropriately for your domestic and overseas staff.

Group Travel Insurance (GT) - Group travel insurance cover can offer great discounts where a number of people are traveling with the same itinerary. For sports teams attending a championship tournament overseas, school or college groups on a cultural tour, or business people from the same company attending a conference together, this type of cover can offer welcome reductions.

Group Personal Pension (GPP) - A group personal pension plan (GPP) is a collection of personal pension plans (PPPs) provided by an employer for its employees.

A PPP is a type of defined contribution arrangement. It is essentially an investment policy that provides an income in retirement. The policyholder contributes to the plan, the money is invested and a fund is built up. The amount of pension payable when the policyholder retires is dependent upon:

  • the amount of money paid into the scheme;
  • how well the investment funds perform; and
  • the ‘annuity rate’ at the date of retirement. An annuity rate is the factor used to convert the ‘pot of money’ into a pension.

A pension scheme that an employer sets up for the benefit of their employees. All staff can become members of the same scheme. Group personal pension schemes are individual policies taken out by people working for the same employer that are grouped together for administrative convenience.

Group Gratuity - Group Gratuity Cash Accumulation Plan is a non–linked non-participating fund based Variable Insurance Product. This plan helps to meet the employer’s obligation for statutory Gratuity Benefit to their employees. The plan also offers Life Cover Benefit so that in case of death of a group member an amount equal to sum assured in respect of that member will be paid. The amount of life cover in respect of each member shall be guided by the scheme rules of the employer.

Mandatory benefits - Mandatory benefits are benefits that the government mandates, or requires, that employees receive from employers as a matter of law. Let's look at the primary mandatory benefits provided to employees:

Voluntary benefits - Voluntary benefits are insurance products that employees may choose to purchase through their companies at rates that are lower than they could get on their own. A few examples of voluntary benefits are dental, vision, life, disability, supplemental health and cancer insurance. Many employers offer voluntary benefits because they allow companies to provide a more robust benefits package at no cost to them.

Share your Thoughts