Group Insurance

One of the most important assets of any organization or company is its human resources. This is why every organization wants to protect its employees so that they can provide outcomes efficiently and be a part of the organization’s growth. Employers choose different kinds of means to make their employees feel financially secure. One of the popular means to ensure the same is providing Group Insurance to employees so that their finances remain secure in case of any health emergency and their families remain financially sound in case of their unfortunate demise. The two most popular group insurance plans are Group Health Insurance Plans and Group Term Life Insurance Plans.

Group Insurance Plans are designed to help individuals of a common group enjoy extensive healthcare and Life insurance benefits at an affordable cost. Suppose an employer wants to provide insurance to his/her employees. Buying individual policies for each of them would be a complex and costly procedure. That’s where a Group Insurance Plan can be beneficial as it can provide similar insurance benefits to all the individuals in a common group. In this article, we will cover everything related to popular types of Group Insurance – Group Term and Group Health Insurance plans. So, without any further delay, let’s get to it.

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What is Group Health and Group Term Life Insurance?

A Group Health Insurance Policy is an exclusive type of Health Insurance plan commonly provided by the employer to their employees i.e. a Group of common people. As you can see from its name, it is available only to those people who come under a common group like Employees working in the same organization. The best thing about Group Health Insurance is that it costs less and can be opted for at no or minimum cost to the employees. Group Health Insurance is not only available for the employer-employees group but for others too, like the Non-employer-employees group, Holders of the same Credit Card, Holders of the same Savings Accounts, etc, according to the group guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI).

On the other hand, a Group Term Life Insurance, as you can see from its name, is made to offer a Life Insurance Plan to a group of common people. Group term insurance policies are also not restricted to employer-employee groups, other groups can opt for it too such as Customers of Banks, Professional Groups, Non-banking Financial Companies (NBFCs), etc. With a group term life insurance, each individual in a group will be eligible for insurance coverage. With a group term life insurance, individuals in a group can enjoy a life cover at a low cost.

In the next section, we will be talking about the benefits of both these types of Group Health Insurance Plans. Read on to know more!

Benefits of Group Health Insurance

Group Health Insurance provides several benefits to individuals such as Low-cost Premium, Easy Online Application Process, Cashless Claims, Post-hospitalization cover. With a Group Health policy, every member of a group will be covered under the policy. We are showing some of them below.

Employee Retention

In a modern world where a smart and efficient person has an abundance of options when it comes to employment, it is a task for an employer to retain its employees. One of the best methods to retain your employees is to provide them an amazing health insurance coverage that not only covers them but also their family. The fact is not hidden from anyone that people like to protect their health at any cost, and when an employer ensures this by offering a Group Health Insurance, employees are supposed to return the favor. This insurance plan automatically increases the chances of employees staying in a workspace.

Lower Premium Cost

For an employer, a Group Health Insurance can also help save a huge amount of money as the cost of the overall premium is quite low as compared to buying individual plans for each employee. On average, a group health insurance plan can be cheaper than an individual health plan. However, it may vary from one insurance provider to another. So, it is important to compare different options before settling on one.

Tax Benefits

Employers can also enjoy tax benefits on providing the Group Health Insurance Plan to their employees. When an employer opts for a Group Health Insurance Plan, both employer and employees are the beneficiaries in this insurance plan. So, it’s like an added benefit for the employer when they provide the Group Health Insurance Plan to its customers.

Motivation in Employees

An employee who doesn’t have any stress about medical expenses caused by the health emergency will be more efficient and motivated towards work as compared to an employee who is unsecured about it. When an employer provides a Group Health Insurance Plan to employees, they are likely to be more productive. All this will ultimately result in the company’s overall growth. A workspace filled with employees who have perfect mental well-being and are secured about health emergencies can do wonders.

Uniform Basic Plan and Insured Sum

In a Group Health Insurance Plan, the premium is usually paid out by the respective employer and all the healthcare benefits are given to employees. The most important thing is there will be uniformity in the basic plan and the insured sum which means it will be the same for all the employees under a plan. Employees will have the freedom to add co-dependents such as parents, spouses, children, etc.

Benefits of Group Term Life Insurance

One of the best features of Group Term Life Insurance is that it brings an equal number of benefits to both employers and employees. We are showing some of them below. Please check!

Group Insurance Cover

One of the key benefits of a Group Term Life Insurance is that an individual who doesn’t have a personal life insurance plan can enjoy the life insurance cover by just being a part of that common group as a group insurance plan offers coverage to a whole group of employees, right from the second they join the group. With Group Life Insurance, their families will remain protected in case they are not around.

Gratuity Funding

With Group Term Life Insurance Policies, employers can help themselves in funding the gratuity amount that they will need to pay to their employees. By providing them a group life insurance policy, the employers can ease off their burden as well as provide them a life insurance cover.

Customizable Riders

Group term insurance can also be customized according to the different requirements of the employees in a group. You must be thinking how? Well, you can choose different kinds of Riders to enjoy different benefits. Some of them are Accidental Death Benefit, Disability Benefit (Permanent & Temporary), Critical Illness Benefits, Terminal Illness Benefits, Education Allowance, etc.

No Need for Medical Screening

Individuals in a group who are getting a Group Life Insurance would not need to undergo any medical test or pre-screening. So, there will be no profiling based on their health conditions or any pre-existing diseases.

Tax Benefits and Economical Costing

Same as the Group Health Insurance, both employers and employees can enjoy tax benefits under different sections of the Income Tax Act, 1961. Due to the tax benefits, employers are encouraged to provide Group Term Insurance to their employees. Other than this, one of the key benefits of a Group Term Insurance is that it’s economical for both employer and employees, which we have pointed out above. The premium for a group policy would be lower than an individual policy.