GROUP INSURANCE IS FOR EMPLOYEE SECURITY
Of course, group insurance covering health, life and disability offers employees job security but it also offers an employer security knowing that valuable employees will appreciate their jobs. There are basically three options: (1) employer pays 100%; (2) employer shares the cost with employees; and (3) employer provides group benefits and the employee pays 100% of cost. There are also five basic kinds of insurance that may be provided and shared, or not shared, in different ways with employees: (1) Health Insurance, (2) Accident Insurance and Critical Illness Insurance designed to help employees meet the "maximum-out-of-pocket" deductibles, co-pays etc. of their health insurance, (3) Dental Insurance, (4) Term Life Insurance and (5) Short Term or Long Term Disability Insurance, sometimes referred to as "Income Insurance". Term Life Insurance and Disability Insurance are often combined in a single policy. Another less common insurance is Long Term Care, which is usually 100% paid as a voluntary option by employees and may cover other family members as well as an employee. Retirement plans may also include insurance products usually as an option. IRS rules permit employees to pay toward their policies "pre-tax". This reduces employee and employer payments for Social Security and the FUTA, Federal Unemployment Tax. Health Savings Accounts may be setup by employees with contributions made by the employee and optionally by the employer. There are other tax advantaged plans for employers to consider.