As an educational institution, schools must ensure the health and welfare of their students. However, accidents and illnesses may happen, and the unexpected expenses could strain a school’s budget.
To mitigate this risk and protect not only their students but also their teachers and staff, schools may consider enrolling in group insurance programs.
In this guide, we’ll take a closer look at group insurance programs, their benefits, and considerations for schools looking to obtain coverage.
What are group insurance programs?
Group insurance programs entail that one policy insures a group of people rather than individual policies for each person. For instance, a school can buy group insurance programs that cover all their students, teachers, and staff.
The policy premium is calculated based on the group’s characteristics, such as age and health risk factors. The greater the risk, the higher the premium.
Group insurance programs typically come in two types:.
- Employer-based group insurance programs – These are group insurance programs that an employer or educational institution provides its employees or staff as part of their job benefits package. Schools may use these kinds of group insurance programs for their teachers and staff.
- Association-based group insurance programs – These are group insurance programs that a group or community organizes. For instance, a professional association of teachers may organize a group insurance program for its members.
Benefits of Group Insurance Programs for Schools
Here are some of the benefits that educational institutions like schools can enjoy by enrolling in group insurance programs:.
Comprehensive Coverage
Group insurance programs can offer comprehensive coverage.
Schools may opt for policies that cover medical expenses, hospitalizations, surgeries, prescription drugs, and other related costs in case a student, teacher, or staff member gets sick or injured.
Peace of Mind
By enrolling in group insurance programs, schools can have peace of mind knowing that they have protection when unexpected medical expenses arise.
Cost Savings
Group insurance programs offer cost savings benefits to both the educational institution and the individual members.
Schools can save on the administrative and transaction costs of getting individual insurance policies and can negotiate for lower premiums. Members, on the other hand, can enjoy lower premium rates as the risk to the insurance company is spread over a larger pool of people.
Customization
Group insurance programs are customizable to cater to the needs of the school, teachers, staff, and students. For instance, a school can choose policies that have higher benefit limits or waive pre-existing condition exclusions.
Considerations for Schools when Choosing Group Insurance Programs
During the selection process, schools should take into account the following factors:.
Coverage
Schools must evaluate what needs they have for the group insurance program. For example, a school may need policies that cover sport-related injuries due to a highly active student population.
Provider’s Reputation and Financial Stability
It is crucial to assess the provider’s reputation and financial stability to ensure a continuous flow of financial support when an unexpected expense arises. Schools must verify the provider’s licensing, accreditation, and complaint history.
Costs
It is recommended to have a thorough understanding of the policy’s components and pricing structures and to solicit various quotations from different providers before choosing one.
Moreover, schools should verify the policy’s details such as deductibles, the percentage of coinsurance, and out-of-pocket limits.
Claims Process
Schools should familiarize themselves with the policy’s claims process to ensure that it is streamlined and efficient. The claims process affects the turnaround time and ease of claims processing.
Conclusion
Group insurance programs offer schools and educational institutions comprehensive coverage, peace of mind, cost savings, and customization.
However, it is of the utmost importance that schools consider the provider’s reputation, financial stability, costs, and claims process before choosing a policy.
