We hear a lot about group insurance but we don’t hear about the basics. So let’s jump right in and start with what is group insurance? Group insurance is insurance coverage that a business can buy to cover health related charges incurred by its employees. The coverage usually provides financial reimbursement for medical and dental costs but can also have additional provisions such as coverage for disability, life, travel and critical care insurance.
How is it calculated?
Group insurance rates are calculated in many different ways. Rates can be based on categories, ratings and claims experience. Insurance providers will determine the best way to calculate your rates based on all the information that is provided to them. For smaller businesses some providers give standard rates based on the number of employees covered. However, insurance companies will offer larger businesses (greater than 15 in some cases) more customizable options, at which point in time an agent, and more in-depth business analysis is highly recommended to get the best fit.
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