Group Insurance 186 views August 26, 2020

Group Health Insurance Plan: Everything You Need to Know About

As the old saying goes, “Health is Wealth”, taking care of his or her health should always be an individual’s top priority. That’s why people opt for different methods to keep themselves healthy. But illnesses often come uninformed, and if you are not ready for it, you may end up paying huge sums to overcome that illness. One of the methods to ensure you’re always prepared for any health-related issues is to have a Health Insurance Policy. There are different types of Health Insurance Policies available in the market and Group Health Insurance Policy is one of the popular ones.

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A Group Health Insurance Policy is an exclusive type of Health Insurance Plan that is 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 a Group Health Insurance is it costs less and can be opted for at no or minimum cost to the employees. In this article, we will cover everything related to Group Health Insurance so that you can understand it better. So, without any further delay, let’s get to it.

Details of Group Health Insurance

Group Health Insurance Plans are designed in such a way that individuals of a common group can enjoy extensive healthcare benefits at a low cost. Suppose an employer wants to opt for Health Insurance for his or her employees. Buying individual policies for each of them would be complex and too much costly. That’s where a Group Health Insurance Plan can be beneficial as it can provide similar insurance benefits to all the individuals in a group.

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). You must keep this in fact in mind that you cannot opt for a Group Health Insurance Plan individually. You can enjoy the benefits only when your employer is providing it.

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. All the terms and conditions, coverage and exclusions will be the same for everyone in a particular group.

Benefits of Group Health Insurance

As we said, a Group Health Insurance Plan provides a wide range of benefits to its customers. We are showing some of them below. Have a look.

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.

Disadvantages of Group Health Insurance Plan

There are no such disadvantages to the employer by the Group Health Insurance Plan. It is only employees who will have a certain disadvantage. So, what is this disadvantage? Well, if an employee decides to leave the company and shifts to some other company, your health insurance cover will cease to exist. And if your new employer is not providing any health insurance benefits to you, it will be a big loss to you.

But, in some cases, the employee will have an option to buy the same policy to keep enjoying the benefits of the plan. If such a thing is available, an individual should opt for it.

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