You know the saying,
good help is hard to find.
Well any even better statement in this market is that good help is hard to keep. One strategy that is use by employers is the offering of fringe benefits like a car, expense account and in some cases Life insurance and Health Benefits.
Group insurance policies are owned by an employer, and provide benefits to the employee. So the question becomes,
why would an employer purchase a group insurance plan, which normally commits the employer to pay at least 50% of premiums, if the employees are going to benefit?
There are several reasons why employers will provide these plans:
Attract and Retain Employees. Often group insurance is purchased by employers to cover themselves as well as their employees because they care, but it is also a great way to preserve peace of mind and attract high-quality talent for their business.
Tax Advantages. An employer can structure plans to provide tax deductions for the business. An owner of a smaller business might use the group plan specifically to have the business pay the premiums for his family's health care plan, which is a very tax efficient structure for a corporation.
Low Cost. Because the coverages are going to be identical or very similar for all members of the plan, and because we spread the risk and administrative costs across the whole group, group insurance is relatively inexpensive. Group insurance plans will allow us to put a good, basic level of benefits in place for a low cost.
Put simply providing employee group insurance coverage strengthens a company’s compensation package, making good workers more likely to choose to work there and stay working there. It also provides a sense of security because everyone covered by the plan knows that they have some insurance protection in place if something unexpected happens.
To learn more about the advantages of dealing with a broker or to get helpful information and guides visit.
www.protectingwhatmattersmost.com.
Edgar Schuchardt
416-806-5813
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