Group Insurance 4220 views September 25, 2020

How to Choose the Right Group Health Insurance Policy for Your Employee

Most of the corporate companies offer health insurance to cover the health risks of their employees. But they have to go for group health insurance plans because the individual plans are quite costly for them. The only difficulty they face is to choose the right group health insurance policy for their employees. So, here you can see different terms of the group health insurance policy that are responsible while you choose a group health plan. The corporate companies or the employers must understand each and every detail of the group health plans like the premium, terms and conditions, and the customization available in the policy. Here are some tips that might be helpful to choose the right group health policy.

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Tips to Choose the Right Group Health Insurance for your Employees

Here are the terms related to the health policy that you must keep in mind while you are taking a health plan for your employees.

Sum Assured

The first thing that an insured is worried about is the amount of the Sum Assured. So, while taking a health plan you must decide sufficient sum assured for your employees. If in case your employee has been hospitalized then the Sum Assured can deal with the expenses and doesn’t affect the savings.

On the other hand, choosing a high amount of the Sum Assured will make you pay a high premium amount. Therefore, the amount of the Sum Assured must be average so that the employee can face normal medical risks.

Choosing a group health insurance plan with minimum premium and high Sum Assured will be the best option for you.

Room’s Rent

You must go for such a group health plan that covers the Room’s Rent if in case your employee is hospitalized. Usually, all the insurance companies give you 1% of the Sum Assured as the coverage for the room’s rent. So, if your Sum Assured is Rs.5 Lacs then you will get the room’s rent coverage of Rs.5000. Therefore, choosing the right Sum Assured is very necessary when you are going for a group health policy.

Network Hospitals

Check the list of all network hospitals that have a tie-up with the insurance companies. Always go for such a plan that has a high number of network hospitals present all over the country. It will help the employee to get the treatment easily no matter what is his present location.

Waiting Period

Check the duration of the waiting period before you buy a group health insurance policy for your employees. Usually, in the Group Health Insurance plan, you have the advantage to waive off all the waiting periods by giving an extra premium. You can check the waiting periods below:-

  1. There is an initial waiting period of 30 days.
  2. 2 years of the waiting period for a specific disease.
  3. Some companies have a waiting period of 3 years to 4 years for the pre-existing disease.

Maternity Coverage

You must check whether your group health plan is giving you maternity coverage. If you can remove the maternity coverage then you can save some extra bucks on your premium. Usually, all the corporate companies hire young blood and the average age of parenthood is 35 to 40 years. So you can customize the maternity benefits as per the age of employees working in your organization.

Family Members Coverage

You will have to decide whether your employee’s family members will be covered under the plan or not. If you want to cover the family members of your employees then the cost of the premium will be doubled. So, make sure that you have enough revenue or funds that you can manage the premium of the group health plan.

AYUSH Treatment

There are many individuals who prefer AYUSH Treatment. AYUSH treatment is basically an ayurvedic treatment and you can remove it from the coverage. So, if you think that only a few employees prefer AYUSH treatment then it is not necessary to take the AYUSH cover in the group policy.

Pre and Post Hospitalization Cover

There are some insurance companies that cover the cost of pre-hospitalization and post-hospitalization. So, you must see whether your insurance company cover the cost of pre and post hospitalization or not.


After exploring all the options available, it will become easier for you to choose the Right Group Health Insurance Policy for Your Employees. The ball is in your court and you will have to decide the risks that have to be covered in the group policy. On the other hand, you must know that the more cover you add the more premium amount you will have to pay.

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