Xplain in your own words the difference between survivor income benefits insurance and group term insurance. How is group ordinary insurance and group universal life insurance used?
The survivor income benefits insurance is a coverage plan that pays a monthly benefit to the surviving spouse or dependents in the event of death. Group term insurance is a coverage which is offered to a group of people. The coverage has benefits to the beneficiaries if the insured individual dies within the coverage period. It is always cheaper as compared to individual coverage which makes it a key component to employees’ insurance packages.
Group ordinary insurance and group universal life insurance are as single contracts which provide coverage for a group of people. The employer is obligated to receive a master policy and the employees a certificate which indicates their terms and conditions. The plan can be non- contributor which means the employees will not take part in payment of premiums or it can be contributory where they take part in payment of premiums Section 2 Describe the factors that should be considered when underwriting employee group insurance. Why are these factors important?
When underwriting a group, each member should complete a short application form indicates the individual’s name, address, dependent information Social Security number, and beneficiary designation. Factors to consider is who will a pay the premiums, extend of risk and quantity of risk as it can be related from past records. A Group underwriting does not require any application to the insurer by each participant, or a medical examination. The group as a whole is being underwritten.
The employer will make a single application to represent the entire group and, instead of selecting individual insured’s, theinsurer makes an underwriting decision based on group characteristics. Section 3 This week we explored several benefits that can be offered by an employer. In your opinion, which is the most important to offer?
Why? Would you answer differently if you looked at it from solely the employer’s perspective? The most important benefit an employer can offer the employees is health benefits. This helps increase economic security mostly after retirement. It is also an advantage to the employer since there will be improved employee retention. Health benefits can be inform of insurance covers taken for the whole employees as a group or for individual employee.
This will guarantee the workers that their beneficiaries will benefit from the employment contract and thus there us a sense of security across the workplace. This helps in boosting employees’ welfare and also increases their productivity. From the employers perspective, the benefits are still beneficial to the organization since there will be increase in output which results from morale generated by the benefits. Employees will be at peace with their welfare and thus collaboratively engage in production activities than worrying for their health.
I would thus not answer the above question differently Section 4 In today’s workplace, employees are from three different generations; Baby Boomers, Generation X, and Millennials. All three generations have strengths and weaknesses. How would you form a team to take advantage of the differences in these generations? The generations have nurtured different type of employees based on their characteristics and behavior. The best employee recruitment policy should ensure there is diversity in the workplace to promote productivity through interactions and blending of talents.
A good team will ensure that proper employee appraisal, training and motivation is carried out periodically to match to the changing demographics and advancement in technology Section 5 What are the benefits and the cost of using a passive approach or an active approach when conducting economic policy? Please be sure to state both the benefits and the costs for both approaches. An Active approach is a where the government uses discretionary fiscal or monetary policies to reduce the costs of unstable private sector. This approach has several benefits.
The government can have exclusive rights of controlling the market by monetary policies like OMO hence the corrective actions to an economic instability will be ensured rather than leaving the decision to the forces in the market. In addition, discretionary policies can be used to manipulate the private sectors which at time are fraudulent to the benefit of consumers. Costs likely to arise from this approach are increase in prices of products and increased interest rates which raise the cost of borrowing.
On the other hand a Passive approach dictates that use of discretionary policies contribute to the instability of an economy and thus such policies are not part of the solution to improve on the economy. The benefits to this approach are that the forces of demand and supply determine the market conditions. The government will have little interference in the market which is an added advantage to the private sectors to raise their standards.
There are however costs which accrue from this approach. Inflation is likely to set, high prices will automatically set and the government will depend on external bodies for help to correct their balance of payments.