This video explains how group insurance operates, and why it is possible to achieve substantial savings on a company’s insurance premium. Examples of savings are shown.
Calgary, Alberta -- (SBWIRE) -- 10/22/2013 -- Ten Star Financial has just put out a video at http://insurance-resource.ca/save-money-group-insurance showing businesses how to save money on group insurance. This video explains how group insurance operates, and why it is possible to achieve substantial savings on a company’s insurance premium. There are many examples of the costs and savings possible, and why the trend has been for group insurance policies to increase in premium.
Many businesses do not realize that the administrative cost of their group insurance plan is simply the difference between premiums paid, and the claims the insurance company anticipates having to pay. For example, given a business with 6 to 24 employees, the insurance company expects a claim loss ratio of 75%. That means they will pay $75 in claims for every $100 of premium. That leaves $25 for administration. Taken as a percentage of claims, that is a 33% administrative fee. There are substantial savings possible by lowering the administrative fees.
Another concept discussed in the video is that group health and dental insurance is not really insurance. The employer indirectly pays the health and dental claims. The risk of these claims is not shared with other employers, which is what insurance is, the sharing of risk. If the actual claims of the employees are higher than allowed for, the employer will see significant increases in the insurance premium. This video explains ways to help control these rising costs.
Myles Rempel of Ten Star Financial says “Most employers can benefit greatly from understanding the basic mechanics of group insurance, and enjoy the cost savings available by re-arranging how it is paid for.”
Insurance Resource is a website at http://insurance-resource.ca to help Canadians with life, group, disability, long term care, business and critical illness insurance. It also has helpful quote systems and calculators, including a new income tax calculator for 2013 - 2014.
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