Benefits of Group Insurance

Posted on April 22, 2019

"Man is a social animal... group-oriented to ensure... connection and belonging" explains Dr. Klein in an article published on

People like to be a part of a group. Admit it... there's power in numbers. 

Groups can sometimes do what individuals cannot. This is why group insurance options are favorable to so many.

The benefits of purchasing a group insurance policy are undeniable. And we've pieced it all together for you below. 

It's a fact, for example, that a whopping two-thirds of employees would purchase group life insurance if it were an option, according to a recent survey.

Why are group insurance policies so popular? Here's the lowdown on the seven biggest benefits of group insurance. 

1. The Hardest Part Is Already Done

The first benefit of many amazing benefits of group plans? It's the fact that the hardest part is already done for you.

Insurance information contains big words that can hurt your head.  

It can be daunting sorting through so much information to find the perfect insurance plan. When you choose a group insurance policy, the research is already complete. 

Try typing "best group insurance plans" into Google and your head will spin. 

Usually, group insurance is offered through your employer. If you work for a reputable company, they sorted through the masses to find the best fit. 

This saves you precious time and potential headaches. 

When you receive the information on the insurance plan offered by your job, everything is nicely listed in neat bullet points. All of the important stuff is highlighted. All you have to do is sign on the line! 

In today's fast-paced world where we are trying to squeeze in so much, this may be a blessing. The time you save on researching the perfect plan can be spent creating quality memories with your family. 

2. Lower Cost Premiums for Group Insurance

Group insurance plans will usually save you money. These premiums cost less. This is because the cost is spread out among a larger group. 

If you were to go out and get an individual insurance policy, the cost would be much higher. 

This is partly because of the administrative costs associated with insurance companies. Underwriting is expensive. When a company provides group insurance, everyone gets the same benefits. This saves time, which ultimately saves money. 

Businesses will usually get a tax break on their end for offering group policies. But if you are an individual, your premium will usually be taken out of your pre-taxed income. This saves you money.

The overall cost is usually based on the average age and population of the group. If you work with a bunch of young, healthy millennials, you may score an even lower premium. 

3. It's Part of a Benefits Package 

It's a nice gesture to see insurance offerings as part of your benefits package. This is similar to the benefit of saving time. 

Knowing your employer put together a nice package with a neat little bow is wonderful. It shows they care enough to invest in the benefits. 

It saves you time and money. It also saves you the headache of cherry-picking your own package. 

Many times your benefits package will include spouse and dependent benefit options. That is another win for you. 

4. Great Rates Without Medical Exams

Group insurance policies usually mean no medical exams for coverage. This is a huge headache reliever, especially if you have a major illness. 

If you opt for an individual plan and have a pre-existing medical issue, often your rate will be higher. Plus all of the footwork of getting set up with an individual plan is time-consuming and energy-sucking. 

This is a major advantage of group insurance benefits. Overall, you will receive good value for the cost whether you have a medical issue or not. 

5. Professional Contact Person 

Have you ever tried to contact a person at a company with a question? All you want is a real person. You hit seven buttons to get to the "right one." You are then on hold for ten minutes only to find out you aren't talking to the "right person." 

Well, with group policies, you may be able to bypass this headache.

There will be an individual point person who you can contact with questions. Usually, one person will manage the group policy for a company. 

This makes getting your questions answered much easier. Sometimes, during an enrollment period, the person may come to your job to present information. 

Attending this information session is still so much easier than doing your own research. You will be able to ask important questions and get individualized answers. If you end up leaving your company, you have a contact person available to answer questions about rolling into an individual plan. 

6. Worry-Free Payments

When you have a group insurance policy, it will usually be through your job. If this is the case, your payments will be deducted automatically from your check. 

This is another advantage of group health insurance. 

You don't have to worry about paying another bill. This takes the stress out of missing a payment. Your coverage will be continuous with auto-payments coming out of each pay period. 

7. Possible Extras

Sometimes group insurance policies include some "extras."

For example, if you have a group dental insurance plan, some companies will add in a vision policy for free. 

Or you may find additional short-term disability benefits attached to your group life insurance policy. 

Group insurance rates and packages can provide these extras for free or at a reduced cost. This helps you save money. You get more value for you and your family. This means you can take better care of yourself and your family in a simpler way. 

The best part: you don't have to go find these benefits yourself! They are already pieced together and organized. 

Other Ways to Get Group Insurance Rates 

Maybe you are freelancing your way through life. Or it's possible your job doesn't offer all of the benefits you want or need. Are you living the "gig" life these days? 

Here's some great news! You don't have to worry about missing out on group rates if you fall into these categories.  

There are other ways you can snag affordable group insurance rates

Many professional organizations offer group insurance rates! Alumni organizations, group membership organizations, and trade organizations are all examples.

Examples of these types of organizations include AARP, the Freelancers Union, and the Alliance for Affordable Services. 

Sometimes you can even find group rates or discounts through wholesale clubs, like Costco. 

Another way to find group discounts is through work "perk" programs. Many employers, especially larger ones, have networked with other organizations to give discounts to their employees. 

Think outside the box. When you get information about employee perks, take time to sign up for an account on the website. Look around a little. 

This may be where you find a great deal on group insurance. 

If you are a member of a group or company that doesn't offer group rates, maybe it's time to be that change you wish to see. If you are looking for a group rate through one of these places, chances are others are too. 

The Key Takeaways

When considering whether to purchase a group insurance plan, there is a lot to think about. Remember these key points

  • It's often more cost-effective for you to choose a group plan
  • The key benefits of the plan are already researched and outlined
  • You don't have to worry about forgetting to pay your bill
  • You don't usually have to have a medical exam before signing up
  • Group rates are cheaper because the cost is shared, not because the plan is not as good
  • You don't have to be employed to get a group insurance rate
  • Group insurance rates sometimes give extras
  • Your family may be able to get coverage, too
  • You can sometimes roll into an individual plan if you leave the company

Are you ready to take the next step? Whichever type of insurance you are looking for, you can apply these key points. 

Now What? 

We have highlighted the seven key benefits of group insurance. These benefits can be seen in many types of insurance policies, including health, dental, life, disability, etc.  

Being part of a larger group may be the best choice for you and your family. Whether you are offered group insurance through work or you choose it through an affiliated organization, you can save big. 

Not only will you save money, but you will save time! 

Get in touch for a group or personal life insurance quote today. 

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