Reasons Company Group Insurance Cannot Be Fully Relied Upon
Group health insurance is often provided by an organization as a part of the many employee benefits to its employers.
The employees get some benefits and the company also does some duties towards its employees.
Normally the main employer of the company or a director of the organization is the main owner of the insurance claiming to be the group leader. The premium is shared among all the employees of the group, and accordingly benefits are offered too.
Generally you will not have to run after any insurer for quotes or talk to several agents for suggestions, or plan and calculate premiums yourself. All these headaches are taken by your company when they first signed up for the package deal, and you get the coverage when you need it.
But behind this really simple story, there lies a few points of concern that you must know, and be aware of before fully relying and depending on your company’s group health insurance.
Do you know what happens to the annuities?
You can be happy and relaxed by just knowing that you are covered, and that too by paying a much lower premium than you had to pay in case of a personal insurance plan.
But do you know what happens to the policy returns or annuities? Where does this money go?
Well, you do not get it as an income and benefit for your investment. Instead the person who is the main holder of the contract (your company director or employer) gets all the benefits of this income from the insurance company.
In some radical way and as outrageous as it sounds, this means that an employer can profit from the misfortune of it’s very own employees. You will never get any dividends or bonuses too from the insurance company, which you could get being an individual insured.
This can be really dangerous.
You may one day forget that your insurance is from the company and for a group. But when you quit the job, and suddenly need to make a claim on the insurance coverage, you will be shocked to find out that you are no longer covered under the same policy.
Or maybe most of the coverage benefits have been reduced because you are no longer a part of that organization. In truth, if you want to have the same amount of coverage and protection as you once had, you could be looking at a huge monthly recurring bill.
The vampires call this thing premium.
And individual insurance policies will never show you this day. They never expire or cease unless you stop making your payments. Seeing that these days, premium payments are debited automatically from our bank accounts, it can take a huge effort by itself to just terminate a policy.
This is where group health insurances can become highly non-reliable.
You have no control over the premium
Being under a group insurance scheme, the premium amount is divided uniformly among all stakeholders. You have no control over it, which you would have had in an individual insurance. Thus if one or few policy holders in the group affects the premium, then the premium for the whole group gets affected and altered.
Moreover, if one or few people in the group want an extra coverage, then the extra premium they will have to pay will also be divided uniformly among the group, making everyone pay a little bit for those services that they may never enjoy.
However, in many organizations, the employer pays for the premiums themselves.
On top of that they allow employees to have optional benefits to take up riders for a more comprehensive coverage. These can even include plans that cater to their family members. Employee will only lose their insured coverage when they leave the organization.
That’s one great benefit of working for a large corporation.
Group insurance policies are not totally dependable
Because of all these reasons, you cannot totally rely on your group insurance policy, and should buy personal policies for yourself to avoid any sudden crises in case you need more coverage, or you quit your current employer.