Insurance cover for group actually means that the particular insurance cover is for a set number of people collectively who would like to form a group with mutual consent. These are generally provided by the employer to his sub ordinates. It draws in people if the employer offers a reasonably good insurance plan and also makes sure that people remain glued to the job, even if it is for the insurance.

Therefore it is a very attractive form of compensation to be given to an employee. Now many people actually compare the benefits and drawbacks of insurance in groups. Having insurance in group is a very cheap, simple and hassle free method of having insurance for yourself.

Generally when you are working under some body, you get an insurance cover provided by your employer. This insurance cover is provided by the employer by some professional insurance company which offers various schemes for groups. The employer chooses the best scheme that would lure people in his company and be appreciated by all. The employer would pay the premium amount for such group insurance. Also this is a very hassle free method.

Unlike individual insurance schemes, where you would actually have to go through a series of tiring health test to actually get yourself an insurance, in group you are saved from all the trouble. It is the task of you employer and he would do it for you. Also having an insurance plan when you are working under some one is one of the motivating factors.

Many people rank insurance cover just after the salary, when it comes to enlisting the factors that makes them stay back in the job. So the employer retains his best employees as they see the insurance cover as a huge benefit of being in that job. So it is not only beneficial to the employer, it is also a favorable factor for the employee and builds goodwill amongst the organization and the people working for it.

Also the benefits offered to every employee are the same, there is no difference in the policy and it does not change with the ranks. Now apart from the benefits already discussed, there is another factor that makes group health insurance favorable. It helps you in cutting taxes. You can make the insurance plan a part of the compensation and the amount of taxes saved by the employers can be saved to pay the premiums of the insurance.

There are various categories among which these group insurance plans can be classified. They are basically of the following types.

- Indemnity plans

- Manage care plans

Both of these have their own merits. While the main advantage of the indemnity plan is that it gives you a wide variety of choices when it comes to hospitals and medical stores, the manage care plan is less complex when it comes to the procedure. In fact these plans are getting very popular with each passing day. A study showed that these plans have increased ten per cent in the last year.