Starting and maintaining a home business enterprise is a bold move. Home businesses can be immensely successful if you know how to maintain your businesses affairs in the right way. This article will cover some of the essentials you need to consider, to ensure the growth, success and profitability of your online business. If you have a home based business, don't miss out on the home office tax credit. You can claim this space even if you don't devote an entire room to your business. If you have an area which is only or primarily used for business purposes, you can claim it based on square footage, and calculate the portion of your home that is taken up by your office space.
In this article we will explore the reasons that motivate employers to get group health insurance for employees and we will look at the advantages and disadvantages from both points of view. Group Health Insurance VS Individual Private Health Insurance Probably the most significant distinguishing characteristic of group insurance is the substitution of group underwriting for individual underwriting. In group cases, no individual evidence of insurability is usually required, and benefit levels can be substantial, with few, if any, important limitations. Group underwriting normally is not concerned with the health or other insurability aspects of any particular individual. Instead, it aims to obtain a group of individual lives or, what is even more important, an aggregation of such groups of lives that will yield a predictable rate of mortality or morbidity. If a sufficient number of groups of lives is obtained, and if these groups are reasonably homogeneous in nature, then the mortality or morbidity rate will be predictable. The point is that the group becomes the unit of underwriting, and insurance principles may be applied to it just as in the case of the individual. To assure that the groups obtained will be reasonably homogeneous, the underwriting process in group insurance aims to control adverse selection by individuals within a group. In underwriting group insurance, then, certain important features should be present that either are inherent in the nature of the group itself or may be applied in a positive way to avoid serious adverse selection such as: Insurance Incidental to the Group: The insurance should be incidental to the group; that is, the members of the group should have come together for some purpose other than to obtain insurance. For example, the group insurance furnished to the employees of a given employer must not be the feature that motivates the formation and existence of the group. Flow of Persons through the Group: There should be a steady flow of persons through the group; that is, there must be an influx of new young lives into the group and an out flow from the group of the older and impaired lives. With groups of actively working employees, it may be assumed that they are in average health. Automatic Determination of Benefits: Group insurance underwriting commonly requires an automatic basis for determining the amount of benefits on individual lives, which is beyond the control of the employer or employees. If the amount of benefits taken were completely optional, it would be possible to select against the insurer because those in poor health would tend to insure heavily and the healthy ones might tend to elect minimum coverage. As the group mechanism has evolved, however, insurers have responded to demands from the marketplace, particularly large employers, for more flexibility in the selection of benefits. This flexibility typically is expressed in optional amounts of life and health insurance in excess of basic coverage provided by the employer and in more health care financing choices. Also, increasingly popular cafeteria plans allow participating employees to select among an array of benefits using a predetermined allowance of employer funds. Individuals select, subject to certain basic coverage's being required, a combination of benefits that best meet his or her individual needs. Minimum Participation by the Group: Another underwriting control is the requirement that substantially all eligible persons in a given group be covered by insurance. In plans in which the employee pays a portion of the premium (contributory), generally at least 75 percent of the eligible employees must join the plan if coverage is to be effective. In the case of noncontributory plans, 100 percent participation is required. By covering a large proportion of a given group, the insurance company gains a safeguard against an undue proportion of substandard lives. In cases in which employees refuse the insurance for religious or other reasons that do not involve any elements of selection, this rule is relaxed. Third Party Sharing of Cost: A portion of the cost of a group plan ideally should be borne by the employer or some third party, such as a labor union or trade association. The noncontributory employer-pay-all plan is simple, and it gives the employer full control over the plan. It provides for insurance of all eligible employees and thus, eliminates any difficulties involved in connection with obtaining the consent of a sufficient number of employees to meet participation requirements. Also, there is no problem of distributing the cost among various employees, as in the contributory plan. Contributory plans usually are less costly to the employer. Hence, with employee contributions, the employer is likely to arrange for more adequate protection for the employees. It can also be argued that, if the employee contributes toward his or her insurance, he or she will be more impressed with its value and will appreciate it more. On the other hand, the contributory plan has a number of disadvantages. Its operation is more complicated, and this at times, increases administrative cost considerably. Each employee must consent to contribute toward his or her insurance, and as stated before, a minimum percentage of the eligible group must consent to enter the arrangement. New employees entering the business must be informed of their insurance privilege. If the plan is contributory, employees may not be entitled to the insurance until they have been with the company for a period of time. If they do not agree to be covered by the plan within a period of 31 days, they may be required to provide satisfactory evidence of insurability to become eligible. Some noncontributory plans also have these probationary periods. Efficient Administrative Organization: A single administrative organization should be able and willing to act on behalf of the insured group. In the usual case, this is the employer. In the case of a contributory plan, there must be a reasonably simple method, such as payroll deduction, by which the master policy owner can collect premiums. An automatic method is desirable for both an administrative and underwriting perspective. A number of miscellaneous controls of underwriting significance are typically used in group insurance plans, but the preceding discussion permits an appreciation of the group underwriting underwriting theory. The discussion applies to groups with a large number of employees. A majority of the groups, however, are not large. The group size is a significant factor in the underwriting process. In smaller plans, more restrictive underwriting practices relating to adverse section are used. These may include less liberal contract provisions, simple health status questions, and in some cases, detailed individual underwriting of group members. Group Policy: A second characteristic of group insurance is the use of a group policy (contract) held by the owner as group policyholder and booklet-certificates or other summary evidence of insurance held by plan participants. Certificates provide information on the plan provisions and the steps required to file claims. The use of certificates and a master contract constitutes one of the sources of economy under the group approach. The master contract is a detailed document setting forth the contractual relationship between the group contract owner and the insurance company. The insured persons under the contract, usually employees and their beneficiaries, are not actually parties to the contract, although they may enforce their rights as third party beneficiaries. The four party relationship between the employer, insurer, employee, and dependents in a group insurance plan can create a number of interesting and unusual problems that are common only to group insurance. Lower Cost: A third feature of group insurance is that it is usually lower-cost protection than that which is available in individual insurance. The nature of the group approach permits the use of mass distribution and mass administration methods that afford economies of operation not available in individual insurance. Also, because group insurance is not usually underwritten on an individual basis, the premiums are based upon an actuarial assessment of the group as a whole, so a given healthy individual can perhaps buy insurance at a lower cost. Employer subsidization of the cost is a critical factor in group insurance plan design. Probably the most significant savings in the cost of marketing group insurance lies in the fact that group commissions absorb a much smaller proportion of total premiums than commission for individual contracts. The marketing system relieves the agent or broker of many duties, responsibilities, and expenses normally associated with selling or servicing of individual insurance. Because of the large premiums involved in many group insurance cases, the commission rates are considerably lower than for individual contracts and are usually graded downward as the premium increases. Some large group insurance buyer's deal directly with insurance companies and commissions are eliminated. In these cases, however, fees frequently are paid to the consultants involved. The nature of the administrative procedures permits simplified accounting techniques. The mechanics of premium collection are less involved, and experience refund procedures much simplified because there id only one party with whom to deal with such as the group policy owner. Of course, the issuance of a large number of individual contracts is avoided and, because of the nature of group selection, the cost of medical examinations and inspection reports is minimized. Also, regulatory filings and other requirements are minimized. In the early days of group insurance, administration was simple. That is no longer true. Even with group term life insurance, for which there is no cash value, the push for accelerated death benefits, assignment to viatical companies, and estate or business planning record keeping means that the administration of coverage may be as complex as with an individual policy. Flexibility: in contrast to individual contracts that must be taken as written, the larger employer usually has options in the design and preparation of the group insurance contract. Although the contracts follow a pattern and include certain standard provisions, there is considerably more flexibility here than in the case of individual contracts. The degree of flexibility permitted is, of course, a function of the size of the group involved. The group insurance program usually is an integral part of an employee benefit program and, in most cases, the contract can be molded to meet the objectives of the contract owner, as long as the request do not entail complicated administrative procedures, open the way to possibly serious adverse selection, or violate legal requirements. Experience Rating: Another special feature of group insurance is that premiums often are subject to experience rating. The experience of the individual group may have an important bearing on dividends or premium-rate adjustments. The larger and, hence, the more reliable the experience of the particular group, the greater is the weight attached to its own experience in any single year. The knowledge that premiums net of dividends or premium rate adjustments will be based on the employers own experience gives the employer a vested interest in maintaining a favorable loss and expense record. For the largest employers, insurers may agree to complicated procedures to satisfy the employer's objectives because most such cases are experience rated and reflect the increased cost. Some insurers experience rate based on the class or type of industry, or even based on the type of contract. For small groups, most insurance companies' use pooled rates under which a uniform rate is applied to all such groups, although it is becoming more common to apply separate pooled rates for groups with significantly better or worse experience than that of the total class. The point at which a group is large enough to be eligible for experience rating varies from company to company, based on that insurer's book of business and experience. The size and frequency of medical claims vary considerably across countries and among geographic regions within a country and must be considered in determining a group insurance rate. The composition (age, sex, and income level) of a group will also affect the experience of the group and, similarly, will be an important underwriting consideration. Advantages and Limitations of the Group Mechanism. Advantages: The group insurance mechanism has proved to be a remarkably effective solution to the need for employee benefits for a number of reasons. The utilization of mass-distribution techniques has extended protection to large numbers of person s with little or no life or health insurance. The increasing complexity of industrial service economies has brought large numbers of persons together, and the group mechanism has enabled insurance companies to reach vast numbers of individuals within a relatively short period and at low cost. Group insurance also has extended protection to a large number of uninsurable persons. Equally important has been the fact that the employer usually pays a large share of the cost. Moreover, in most countries, including the United States, the deductibility of employer contributions and the favorable tax treatment of the benefits to employees make it a tax effective vehicle with which to provide benefits. Another significant factor, and one of the more cogent motivations for the rapid development of group insurance, has been the continuing governmental role in the security benefits area. Within the United States, Old-Age. Survivors, Disability, and Health Insurance programs has expanded rapidly, but many observers believe that, had not group insurance provided substantial sums of life insurance, health insurance, and retirement protection, social insurance would have developed even more rapidly. As economies worldwide continue to reduce the size and scope of social insurance programs, we can expect the demand for group based security to grow even more. Disadvantages: From the viewpoint of the employee, group insurance has one great limitation- the temporary nature of the coverage. Unless an employee converts his or her coverage to an individual policy which is usually ore expensive and provides less liberal coverage, the employee loses his or her insurance protection if the group plan is terminated and often also at retirement because employment is terminated. Group life and health protection is continued after retirement in a significant proportion of cases today in the United States, but often at reduced levels. Recently, with the introduction of a new U.S. accounting standard (FAS 106) requiring that the cost of such benefits be accrued and reflected in financial statements, an increasing number of employers have discontinued post retirement life and health benefits entirely. When such continued protection is not available, the temporary nature of the coverage is a serious limitation. Retiree group health insurance often is provided as a supplement to Medicare. Another problem of potential significance involves individuals who may be lulled into complacency by having large amounts of group insurance during their working years. Many of these persons fail to recognize the need for, or are unwilling to face the cost of, individual insurance. Perhaps of even greater significance is the fact that the flexibility of the group approach is limited to the design of the master policy and does not extend to the individual covered employees. Furthermore, group plans typically fail to provide the mechanism for any analysis of the financial needs of the individual which is a service that is normally furnished by the agent or other advisor. Many agents, however, discuss group insurance coverage with individuals as a foundation for discussing the need for additional amounts of individual life and health insurance. If you would like some more details, perhaps you are a small business owner and are considering group health insurance for your employees, please feel free to contact me [http://www.health-insurance-buyer.com] for a one on one no hassle free consultation. Carlos Diez is a senior benefits consultant for health-insurance-buyer.com, click here for a free no obligation quote [http://www.health-insurance-buyer.com] we are a referral service that refers consumers to the insurance carriers that can best fit their wants and needs. He holds life, health, and annuity licenses in 48 states and is appointed with over 88 carriers.
HALAMAN SELANJUTNYA:


business casual business cards business insider business plan business casual women business letter format business casual men business plan template business name generator business attire business analyst salary business acumen business analytics business administration degree business administration jobs business articles business analyst jobs a business plan a business's source documents a business uses a credit to record a business owned by one person a business organized as a corporation a business that performs an activity for a fee a business's size is measured a business letter a business that gives you a loan is a business plan is best described as a business boutique business bank account business books business broker business backpacks business banking business budget template business bureau business buzzwords business blogs b business solutions b business schools b business words b business bureau b business credit score b business solutions mystery shopping reviews b business hotel b business hotel and spa b business uts b business administration c business words c business functions in jde c business class c business school c's business letter writing business c/o business c level business c suite business c corporation business development business degree business definition business development manager business days business day calculator business dictionary business degree jobs business dress business development manager salary d business words d business class td business direct dbusiness top 500 d business administration d-business entertainment d business names d business class qantas d business consulting business dandb number business ethics business email business entity business entity search business etiquette business executive business email format business email address business economics business essentials e business cards e business definition e business international e business models e business visa india e business fbla e business staffing e business consultant e business examples e business vs e commerce business formal business facebook business first business formal women business finance business first bank business flyers business funding business facebook page of business of businesses that fail of business days between two dates f business words of business company ofbusiness funding of business careers of business glassdoor of business crunchbase of business gurgaon glassdoor business grants business google business goals business grants for women business gmail business games business gifts business growth business goals examples business general liability insurance g business suite g business extractor g business insight g business words g business hub g business park jaipur g business news live g business center g business email g business center coimbatore business hours business holiday cards business headshots business hours sign business haircut business horizons business health insurance business hairstyles business hierarchy business hashtags h business words h business review h business tower dubai handm business casual handm business model handm business attire handm business clothes handm business strategy handm business controller handm business wear business intelligence business insurance business intelligence analyst business in spanish business is business business internships business insider bias business intelligence analyst salary i business banking i business solutions i business network i business magazine i business funding i business class i business technologies i business login i business promoter i business words business jobs business journal business judgment rule business jargon business jobs near me business jet business justification business jokes business jacket business jargon generator j business directory j business class j business directory joomla j business directory documentation j-businessdirectory free download j-business directory nulled j's business solutions j business names j business class thai airways j-businessdirectory download business knight rutgers business knowledge business kpis business kitty business knowledge services business know how business key business kakuna business kids business koozies k business solutions k business words k business names k business spaces vijayawada k business system k business square k business logo k business center k business spaces k business square gachibowli business loans business letter template business loan calculator business law business line of credit business letter example business lawyer business liability insurance l business words l-business a/s l business solutions l business license business l.p business l'oreal business landd business l.c landt business emerging fund landt business cycle fund business model business model canvas business majors business memo business management jobs business management degree businessman business marketing business management salary m business 5th edition m business 5th edition pdf m business 6th edition pdf m business ferrell m business 6th edition pdf free m business communication m business 5th edition ebook m business 4th edition m business 5th edition chapter 1 m business book business name business name search business name ideas business near me business news articles business name generator free business news daily business networking n business words in business in business search in business magazine in business be men in business terms what is profit in business the four basic forms of competition are in business failure usually means what in business band in business organizations most employees work in business office depot business operations business owner business opportunities business objects business operations manager business organization business of the 21st century business of being born o business words o business introductions and first impressions o business portal o business class o business solutions centro business centre o business meaning business o level past papers business o level marking scheme business o level business proposal business plan outline business proposal template business plan examples business plan definition business professional men business process management p business words p business class p business center p business class lufthansa p. business sdn bhd p business solutions business pandl business pandl template business.p aytm.com/retail business quotes business quarters business quote of the day business questions business quote template business quizlet business quiz business quotes funny business quarters 2019 business quote generator q business words q business services q business furniture q business page az q business qatar q business source billings montana q business services page az q-business advisory q business consultants q business names business resume business requirements business report business roundtable business risk business registration business reviews business rules business real estate business reply mail r business days r business analytics r business words r business class r business ideas r business intelligence tool r business analysis r business science r business news r business analytics examples business school business school rankings business search business synonym business strategy business signs business systems analyst business suit business statistics business services s business words is business school worth it is business a good major is business a social science is business class worth it is business casual jeans is business insider a magazine is business insider a credible source is business a ba or bs is business stem business to business business tax business time business terms business technology business types business track business tax id business thank you cards business to start t business.wa.gov/bls t business words t business.udemy.com t business names t-business login t business portal t business center t business email t business solutions t-business mobile business unit business use of home business universities business uber business use case business undergraduate ranking business up front party in the back business url business unionism business use of car u business words u business consultancy sdn bhd u business school u business account u business class u business center bucuresti business u of c business u of t business u of r business u can start with little money business valuation business venture business visa business valuation calculator business verizon business value business visa usa business voicemail greeting business vocabulary business valuation methods v business card v business words v business center v business zone v business enterprises v business names v business center university street v business center business park v business center queen rania street business v sebelius business week business wire business woman business writing business website business wars business women business words business writing course business world w business words w business capital w business wind w business lunch w business centre north point w business centre birkirkara w business center w business school w business bay w business hours business xfinity business xtra business xpansion journal business xpress business xfinity login x business words x business names x business wordpress theme x business resources jx business resources sdn bhd x business solutions x business tirol x business salzburg x business rb business and media business yelp business yelp login business yellow pages business yoga pants business youtube business yard sign business youtube channel business you can start from home business year business yahoo my business y business words my business course my business verizon my business venture my business account my business listing my business google account my business app my business vonage business zone business zoom business zillow business zone pro business zoning laws business zombie business zip code business z class business zelle business zipper binder z business class z business words z business class united z business class delta z business card z business contact number z business mandi live z business share price z business share market z business hindi news business 0 credit cards business 0 apr business 0 balance transfer business 001 quizlet business 02 business 0450 past papers business 0450 syllabus business 0lan business 0062 conestoga 0 business credit card 0 business loans 0 business credit card balance transfer 0 business line of credit 0 business credit card uk $0 business account 0 business rates 0 business car finance 0 business tax 0 business loans uk business 101 business 101 books business 101 quizlet business 101 pdf business 100 business 12th edition business 1st bank business 101 course business 101 textbook business 121 1 business day 1 business day from now 1 business day shipping 1 business day means 1 business day from friday 1 business days from today 1 business connection 1 business day shipping old navy 1 business day from sunday 1 business day delivery business 2.0 business 2 community business 2 business business 21 business 2018 business 2000 app state business 2.0 magazine business 201 business 2019 business 2.0 definition 2 business days 2 business days from today 2 business day shipping 2 business days from now 2 business credit card 2 business days from tuesday 2 business days from saturday 2 business days from monday 2 business day shipping from friday 2 business days means business 365 business 302 business 365 login business 360 business 30 automotive business 302 materials business 3 ring binder business 3d printer business 310 business 32 smc 3 business days 3 business days from today 3 business days from thursday 3 business days from tuesday 3 business organizations 3 business days from friday 3 business days from saturday 3 business types 3 business days from sunday 3 business ethics business 40 closure business 4.0 business 4 wv business 40 closure map business 4.0 tcs business 40 traffic business 411 business 4th quarter business 40 closing map business 4 ps 4 business days from today 4 business cycles 4 business functions 4 business structures 4 business quarters 4 business strategies 4 business types 4 business models 4 business sectors 4 business responsibilities business 5 year plan business 501 business 500 business 5th edition business 50th anniversary business 5 forces business 5 year plan template business 5e business 5 smc business 5g 5 business days 5 business days from today 5 business environments 5 business days from monday 5 business level strategies 5 business ideas 5 business days from tuesday 5 business days from thursday 5 business days from wednesday 5 business processes business 6th edition business 60th anniversary celebration ideas business 690 sfsu business 6-12 texes business 6 mark question business 600 visa business 6 letters business 6 crossword clue business 6 p's business 6000 cisco 6 business environments 6 business card holder 6 business functions 6 business hours 6 business strategies 6 business days from friday 6 business types 6 business weeks from today business 77 business 78216 business 7 ps business 7115 past papers business 777 emirates business 7 movie business 7 days business 7000 mun business 702 business 7132/1 7 business days 7 business days from now 7 business days from monday 7 business activities 7 business principles 7 business days from thursday 7 business days from friday 7 business days from tuesday 7 business days from wednesday 7 business capital business 80 business 85 business 83 business 80 traffic business 80/20 rule business 85 high point business 85 accident business 800 number services business 80 accident business 85 traffic 8 business days from today 8 business functions 8 business card holder 8 business days 8 business numerology 8 business functions grade 9 8 business functions essay 8 business functions grade 10 8 business parade south 8 business functions essay grade 10 business 98 business 911 business 98 panama city fl business 90 day plan template business 95 business 941 form business 9/11 posts business 901 podcast business 916 370 business 90 day plan 9 business days from today 9 business days 9 business model canvas 9 business models 9 business functions 9 business park drive lynbrook 9 business news 9 business model canvas components 9 business model components 9 business blocks

Tidak ada komentar:

Posting Komentar