California Life-Only & Accident and Health AgentAccident and Health InsuranceEasy
A small business owner is looking to provide health insurance for her 15 employees. She wants a plan that offers broad coverage at a lower cost per employee and minimizes individual underwriting. What type of health insurance would best suit her needs?
- AGroup Accident and Health Insurance
- BLimited Benefit Health Insurance
- CShort-Term Medical Insurance
- DIndividual Health Insurance
Show answer & explanationAnswer & explanation
Correct answer: A. Group Accident and Health Insurance
Group Accident and Health Insurance is designed for employers to cover multiple employees, offering broader coverage and often lower premiums due to risk pooling, with less individual underwriting compared to individual policies.
Why the other options are wrong
- B. Limited benefit plans provide very specific, narrow coverage, not broad coverage.
- C. Short-term medical is temporary and not suitable for ongoing employee benefits.
- D. Individual policies are more expensive and require individual underwriting.
Group Accident and Health Insurance
A single policy issued to an employer or other eligible group, covering multiple individuals (employees or members) under a master contract, typically offering lower premiums and less stringent underwriting than individual policies.
- Covers multiple individuals under one policy.
- Often lower cost due to risk pooling.
- Reduced individual underwriting requirements.
Memory trick: Groups get Great Coverage, Greater Savings.