While the awareness of individual health insurance policies has been increasing over time, along with family health insurance plans, there is one class of health insurance policy about which people don’t know much about. These are called Group health insurance policy. The reason people don’t know much about it, is because they are mostly the recipients of these policies rather than buyers as we explain in detail in this article.
What a group health insurance policy is?
As the term suggests, it is a kind of policy in which a group of people is covered. The coverage amount is provided to each and every member in the group, which includes the dependants as well. In case you don’t know, this kind of health insurance policy is offered mostly by the organizations, business groups, banks, and housing societies. The employers buy a group policy for their employees. It means that the employers pay the policy’s premium amount from their pocket.
So, what makes a group health insurance policy more feasible and beneficial? Well, from the perspective of employers or purchaser of group insurance policy they offer the benefit of lower prices per policy. Buying a group policy is cheaper when compared to purchasing several individual ones. The premium per policy in case of group policies is always less expensive. However, at the same time not everything about the group health insurance policies is better than the individual ones.
From the perspective of consumers of group insurance plan there are many short-comings. First of all, you don’t have the flexibility to customize the plan as per your needs. One has to user the cover already designed. In addition, the coverage amount you get under a group policy may not be sufficient enough. Plus, once you leave the organization, you are no longer covered by the policy. For this reason, if you are looking for better protection for yourself, you must go for an individual health insurance policy. Nevertheless, there are various other advantages of a group policy. Let’s have a quick look at some of them.
Benefits offered by the group health insurance policies
- When you join a company which provides health coverage to its employees, you do not have to spend anything extra on your health plans. As the premium amount is completely borne by the organization, therefore it does provide you with a sense of relief. In case you fall sick and need to be hospitalized, you will not have to spend anything from your wallet.
- Another advantage is that the premium associated with these policies is a low-cost affair. For the organizations, group policies are much more cost-effective, and the insurance companies even offer discounts on their products.
- Whenever you buy a health insurance policy, you have to go through a series of medical tests, which is also known as the pre-medical screening. The purpose of this screening is to check if the applicant is suffering from any medical condition or not. In the case of group health insurance policies, there is no such requirement.
- The process of making a claim in a group insurance policy is much easier in comparison to that of the individual policies. Claims are settled in a speedy manner, which makes the entire process hassle-free not just for the employee but for the employer as well.
- Just like any other health insurance product, even group policies come loaded with tax benefits. Employers get eligible for tax deduction benefits under a wide range of sections of the IT department.
- We all know that employee retention is important for every company. As an employer, if you want to earn the loyalty of your employees, you must make your company’s policies more ‘employee centric’. In this regard, covering your employees under a group health insurance policy can be quite effective. It will make them feel positive about your company’s image. Some companies also allow their employees to include their family members in the same policy.
So, those are some of the main benefits offered by a group health insurance policy. These days, almost every health insurance company offers group policies. Some insurance companies even provide you with the option of customization. You can get the different aspects of the policy customized as per the nature and size of your organization.
In a group health insurance policy, if an employee wants to increase his policy’s sum assured value, he can get it done as well. All he has to do is pay an extra amount of premium to his employer, which can be deducted from his salary. Without any doubt, group health insurance policies have proved to be a boon for the employers and employees too. When the employees are covered by a policy, it becomes easier for them to avail medical and healthcare facilities instantly, without worrying about the finances. The physical and financial well-being of employees does matter a lot in the growth of a company.