- Group insurance is coverage issued to a group of members as part of an employee benefits package, rather than insurance you purchase on your own. If you’ve ever enrolled in health, dental, vision, or other insurance coverage through your work, then you’re familiar with the concept of group insurance.According to the Kaiser Family Foundation, around 50% of Americans are covered by employer-provided group insurance.1 It typically comes at a lower cost than an individual policy, as your employer may contribute toward the cost of coverage.
- How does group insurance work? Group insurance plans are purchased by organizations and provided as employee benefits. Although it’s called “group” insurance, each employee is enrolled in their own policy just as they would be if they had purchased insurance independently. The word “group” simply references the fact that an insurance provider is covering a group of people associated with a single organization.If your company offers group insurance as an employee benefit, you can choose to enroll in or decline the coverage that you are eligible for. If you choose to enroll, your premium payments may be covered in part by your employer. In some cases, your employer may cover all or most of the premium cost. Your own contribution toward the monthly premiums is often automatically deducted from your paycheck.
- How does group insurance differ from individual insurance? Group insurance is typically offered at a discounted rate through your employer. Individual insurance is a plan you purchase for yourself — either through the marketplace or from an insurance company directly — and often costs more.