Group insurance
Human resources are one of the main components of every company that determines its course. The well known saying “people make the companies” is proved every day in every successful company. As a modern businessman you aspire to take care of your personnel and their families in the best possible way. Group Insurance ensures that your employees receive significant benefits as well as your company important advantages.
Several years now, the lacks and shortages in the State Health and Pension Coverage intensify the need for programs like these.
Group Insurance applies to any company that employs more than 5 employees. There are two kinds of Group policies: Group Life, Health and Accident, as well as Group Pension plan.
Other examples of groups that can be covered by Group Insurance policies are Unions or Associations that may want to provide any type of coverage to their members or personnel.
This kind of Insurance allows a company to provide coverage to its employees as well as their families in case there is a health emergency (illness or accident) that can have serious financial repercussions to the individual. The owner of the company and his/her family can also be included in the policy. A sample of provisions:
- Life Insurance
- Disability Insurance
- Accident Insurance
- Non-permanent (Temporary) Disability (due to Illness or Accident)
- Heath Insurance (Inpatient and Outpatient)
- Maternity benefit
- Surgery Benefit
- Serious Illnesses Benefit
Tax Benefits for the company: Tax allowance up to 1.500 euros per employee annually.
The purpose of a Group Pension Plan policy is the accumulation of capital during the years of active employment for the worker’s future benefit. It requires the employer to make contributions to the pool of funds per employee annually. Moreover, every employee may choose to contribute part of their wages to the same pool of funds in order to boost their future retirement income.
The employee receives the payout of the amount gathered at the time of his/her retirement. In case of early departure, resignation or dismissal, there is a payout which is specifically determined by the terms of the contract. In most cases, in an early payout the employee receives his/her own contributions and a smaller amount of the employer’s contributions.
Tax Benefits for the company: Total tax exemption of the employer’s contributions for every employee included in the Plan, according to N.4172/2013.
Tax Benefits for the employee prior to and after retirement (N.4172/2013): Total tax exemption for their own voluntary contributions. Specific individualized taxation applies to the payout of the amount gathered in the individual retirement account of every employee.
- The investment on the human resources leads to greater efficiency and productivity.
- It improves the relationship between management and employees.
- It allows for the attraction and retention of professional executives and employees.
- In case of an employee’s disability or death, the Group Insurance policy provides for his/her compensation or that of the family, therefore the company is free of any obligation.
- Flexibility in drafting the policy which can be adjusted to the company’s needs and financial resources.
- it can provide Top Management executives with a broader aspect of benefits as well as compensation.
- There are significant tax benefits for the company (see above).
- It complements Social Security benefits and therefore allows for a better standard of living for the employees and their families.
- It decreases the stress related to financial insecurity and provides relief to family planning and budgeting.
- In many Group Insurance policies pre-existing conditions are included and covered.
- They can complement Group Insurance benefits with individual policies at a significantly lower premium, ensuring up to full coverage.
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