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Posted: 1 Jul '23

Why Small Business Owners Should Explore Group Health Insurance Benefits

Why Small Business Owners Should Explore Group Health Insurance Benefits

As a small business owner, you know how important it is to have access to the right insurance coverage for your employees. You want to ensure that your people are healthy and motivated to perform their duties at the highest level possible. One way to accomplish this is by offering them a group health insurance policy. With group health insurance benefits, you provide your employees with customized healthcare coverage at a lower rate than they would pay individually.

And while most group health insurance policies are great, the terms and conditions will always vary. Some plans are better suited for certain types of businesses than others, so you should know your needs and understand the different policies before taking your pick. Call us today to learn more.

Understanding Group Health Insurance Benefits

Group health insurance is a type of insurance that covers a group of people, such as employees or members of an organization or union. It may also be called group health care or group coverage. Group health insurance benefits are typically provided in one of two ways: through an employer-sponsored or a self-funded plan.

With an employer-sponsored plan, an employer pays all or part of the premium to an insurance firm that offers coverage. A self-funded plan, however, means the company pays for claims and any administrative costs rather than contracting with an insurance company. The latter may offer more flexibility, but it comes with more risks.

As a small business owner, you can offer group health insurance benefits through an employer-sponsored plan. The plan allows employees to receive medical coverage and other benefits, such as vision and dental care, at a reduced cost. Group plans are less expensive than individual plans because they spread the cost among all the group members. 

You can also negotiate for discounts if you have employees who work part-time or full-time at different times during the year. That is because fewer people will be using services that month than if everyone were eligible for coverage all year long.

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In-Demand Group Health Insurance Benefits to Offer Your Employees

Most group health insurance benefits will cover basic illnesses and emergencies, including general hospital visits, prescription drugs, and consultation fees. However, some plans offer more specialized services, long-term care (nursing homes), eyeglasses, ambulance rides, and more. That said, not all plans are worth the premiums paid. Here are the in-demand group health insurance benefits you should prioritize. 

Dental Insurance 

Dental insurance is an important part of a health plan, and it's one that you should consider offering your employees. It can help cover the costs of routine checkups, cleanings, and more serious procedures such as root canals, crowns, and implants. Dental insurance offers other benefits, such as discounts on dental products and services from participating providers.

Life Insurance 

Life insurance is one of the most important group health insurance benefits you can offer your employees. There are several types of life insurance policies, and you want to offer your employees different options to choose from. Examples of life insurance policies include term life, whole life insurance, and universal and variable life insurance policies.

Before choosing some life insurance policies to offer your employees, ensure it offers the right protection for their families and loved ones. Remember, the cost of life insurance policies depends on the amount of coverage the employees choose and the age of insured persons.

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Disability Insurance 

Disability insurance is an important part of any business owner's group health insurance benefits package because it provides income replacement for workers who cannot work due to illness or injury. The goal of disability insurance is to ensure that your employees do not have to worry about paying their bills if they cannot work for an extended period due to injury or illness.

When offering group disability insurance, you can specify it as short-term or long-term. This gives employees the option to choose what works best for their needs and that of their families in the event of an injury, illness, or even death. 

Sick Days Benefits

Another popular group health insurance benefit is sick days, which can be used by employees who cannot work due to illness, pregnancy, or disability. This benefit can help keep your employees healthy and happy. In some cases, it can also be useful for parents or guardians with children with chronic illnesses or disabilities.

Mental Health Benefits 

Mental health benefits cover mental illnesses such as depression, anxiety disorders, post-traumatic stress disorder (PTSD), schizophrenia, and other conditions. Many employers offer this type of coverage because they understand that mental illnesses can be just as debilitating as physical ones and may require ongoing treatment over time rather than just a one-time hospital visit.

Mental health benefits may include counseling, therapy, and other forms of specialized treatment. Employees who feel good physically and mentally tend to be more engaged at work, so providing group health insurance benefits can help improve productivity in your business.

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Why Prioritize Group Health Insurance Benefits in Your Business

Introducing group health insurance may seem unnecessary if you have a small team. However, there are many benefits to offering group health insurance benefits that make it a worthwhile investment. Here's why you should prioritize group health insurance policies:

Helps With Talent Attraction and Retention 

By offering group health insurance benefits, you can appeal to potential employees who cannot afford them on their own. Or candidates who would have trouble finding traditional coverage options due to pre-existing conditions or other factors. Additionally, if you offer a comprehensive benefits package, you will be able to attract higher-quality candidates than if you only offered the most basic option. 

Ensures Compliance with the Law

Offering group health insurance benefits ensures that your company complies with laws related to providing health care coverage for employees. This would include filling out the required paperwork, paying premiums on time, and complying with other regulations. Failure to do so may result in penalties or fines.  

Boosts Employee Morale and Productivity 

Many workers have difficulty deriving value from their jobs when they feel undervalued or unappreciated. Giving your employees access to group health insurance benefits can help boost employee morale because it shows that the management cares about providing value beyond just compensation.

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Improves the Overall Health of Workers

With a group health insurance benefits plan, your employees can get regular checkups and other preventive care. That way, you'll be helping them to stay healthy and safe on the job. This will benefit your employees and your business since happy employees mean happy clients, which is good for business.  

Maximizes Tax Benefits

The amount you pay towards the group health insurance benefits plan can be deducted as a business expense when calculating income tax. This is a huge benefit for small businesses. Similarly, employee contributions to health savings accounts and group health insurance plans are pre-tax, reducing the taxable income. The cash value accrued from the insurance benefits is also excluded from the employees' taxable income. 

Grow Your Business in Style 

In today's business climate, the key to a successful business is to keep your employees happy, engaged, and motivated. And one of the best tools in your arsenal is group health insurance benefits. If you customize the benefits well, you'll grow your business in style while creating a stable and rewarding environment for all the business stakeholders. Call us today to learn more from a Vistaplan broker.


About the Author - David Motkoski

David Motkosk At the Helm of Vistaplan Financial Group

David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance products they are purchasing, so they can make the right choices for their budgets, plans, and futures. CONNECT WITH ME ON LINKEDIN

Life & Disability Insurance for Alberta Health Care Professionals, Business Owners, and Their Families Since 1983