The employer-employee relationship is one of mutual benefits. While employees work for the benefit of the organization, the organization is expected to benefit the employees financially and non-financially. Group insurance plans are part of the financial benefits that ensure the financial safety of employees and their families in case of contingencies. Though not a necessity, these indirect financial benefits give employers an edge in the talent acquisition and retention space.
One important and sought-after group insurance benefit is group health insurance. Group health insurance offers multiple benefits to both employees and employers. Here how:
Key Takeaways
The “Day 1” Safety Net: One of the most significant advantages for employees is the waiver of all waiting periods. Whether it is a chronic condition like hypertension or a planned maternity event, coverage is active the moment you join the firm.
Newborn Inclusion: Unlike the retail market, where infants are often excluded for the first three months, group policies generally protect a newborn from their first breath, ensuring early-life medical costs are covered.
Eliminating Entry Barriers: Since no medical check-ups are required, employees who might be deemed “uninsurable” or high-risk in the individual market gain full access to quality healthcare through their employer.
Emotional Loyalty & Retention: For employers, covering an employee’s family (spouse, children, and parents) fosters a deep emotional connection to the organization, which is a more powerful retention tool than a paycheck alone.
Employer Financial Flexibility: Organizations can optimize their cash flow by choosing monthly, quarterly, or yearly premium payment options, all while deducting the cost as a business expense.
For Employees
Default Medical Insurance Policy
The day an employee joins an organization, he/she will be covered under Group Health Insurance by default if the company has a Group Mediclaim Policy. All the employees of the organization will get basic coverage simply by being a part of the organization.
Any Pre-existing Diseases? No Worries!
Employer Health Insurance provided by employers covers pre-existing diseases from the first day of an employee joining an organization. Pre-existing diseases such as diabetes or hypertension are all covered under the Group Health Insurance provided by SecureNow. There is no waiting period, unlike in individual health insurance policies.
No Need for a Medical Check-up
Usually, when you go to buy an individual health insurance policy, you have to undergo a “pre-medical screening” or “pre-policy screening.” Medical tests in this screening determine your current medical conditions and affect your premium rates. However, in a Group Medical Insurance Policy, you don’t have to go through a medical check-up or submit medical reports to get enrolled under this plan.
Maternity Benefits
Some group & health insurance policies offer maternity benefits while others don’t. However, at SecureNow we understand your needs and are happy to provide quotes from the Mediclaim policies that offer maternity benefits. You get cover from day one of joining the office, which means you will get maternity benefits on an immediate basis. Also, we have set separate limits for normal, cesarean, or ectopic pregnancies.
A newborn baby can also be covered under the policy without the standard 90-day waiting period.
No Waiting Period
There is no such thing as a waiting period in Group Health Insurance. Illnesses like heart issues, diabetes, etc. are covered from day one. As already mentioned, in an individual health insurance policy you may have to wait for 3-4 years for maternity benefits, but a Group Health Insurance provides you maternity benefits from the first day.
Cashless Hospitalization
We at SecureNow provide you with insurers that have a ready network of hospitals where you can avail of cashless treatment once approved. That means you don’t have to go through the headache of submitting papers and various other documents. Just show the TPA your health insurance card and avail of the cashless facility in any of the hospitals within the insurer’s network – you can now focus on your complete health recovery!
For Employers
High Retention Rate
Your workforce determines whether your organization will reach great strides or not. The best way to increase your productivity is by improving employee retention rates. Providing your employees with a Group Health Insurance plan that not only covers the employees but their family members as well, will help to make them better emotionally attached to your organization, which will both increase retention rates and attract new talent.
Motivated Employees
Flexible working hours and a good paycheque are not enough to boost your employee’s morale. A Group Mediclaim policy works as an excellent add-on benefit. As you would have experienced, medical expenses are today touching new heights, but by insuring them under Group Health Insurance, you are taking the burden off them. This will motivate them to work harder.
Low Premium Rates
The premium rates of Employer Health Insurance depend upon:
- The number of employees
- Average age
- Type of occupation
- Type of coverage and benefits opted for
- Your (I.e. the employer’s) claim history
However, you can minimize the premium rates — our team of experts at SecureNow will help you choose the most suitable plan based on your requirements and budget.
Premium Payment Option
You can choose how you want to pay the premium based on your convenience:
- Monthly
- Quarterly
- Yearly
Tax Benefits
Under section 80D of the Income Tax Act 1961, the premium paid for Group Health Insurance provides a tax benefit. But remember only the employer can only claim tax benefits. An employee is not entitled to any tax deduction under Employer Health Insurance offered by an employer.
Employees can get tax benefits only when they have bought individual health insurance.
Summary Table: Group Health Insurance vs. Individual Plans
| Feature | Group Health Insurance (GHI) | Individual Health Insurance |
| Waiting Periods | None: Most covers (including PEDs) start on Day 1. | Standard: 2–4 years for pre-existing diseases. |
| Medical Screening | Not Required: No pre-policy check-ups needed. | Mandatory: Based on age and medical history. |
| Maternity Benefit | Often available from Day 1 of joining. | Usually involves a 3–4 year waiting period. |
| Newborn Cover | Covered from Day 1 of birth. | Typically covered only after 90 days. |
| Premium Cost | Paid by the Employer; lower bulk rates. | Paid by the Individual; higher retail rates. |
| Tax Benefits | Claimed by the Employer under Section 80D. | Claimed by the Individual under Section 80D. |
Compare & Generate Quotes Online Free
You can generate group health insurance quotes from multiple insurers online using our online calculator. Our calculator will help you generate multiple quotes with benefits customized as per your requirement as available from different insurance companies offering employer health insurance.
Once you generate a quote, our qualified advisors will help you choose the right Group Health Insurance suitable for your requirements.
Frequently Asked Questions (FAQs)
1. Can I get a tax deduction if my employer deducts the health insurance premium from my salary?
A) No. Under Section 80D, the tax benefit is only available to the entity making the payment to the insurer. In employer-sponsored plans, the company claims the deduction. To get a personal tax benefit, you must purchase an independent individual health policy.
2. Why is there no medical check-up required for a group policy?
A) In group insurance, the insurer evaluates the “collective risk” of the entire workforce rather than the specific health of one individual. This allows them to provide a blanket cover to everyone, regardless of their personal medical history.
3. Does the maternity benefit cover all types of deliveries?
A) Most comprehensive group plans include separate, pre-defined limits for normal deliveries, cesarean sections, and even ectopic pregnancies. Coverage often starts from the first day of employment without the multi-year wait found in private plans.
4. What happens if I want to use a hospital that is not in the “Network”?
A) You can still receive treatment at a non-network hospital, but you will not be able to use the “Cashless” facility. You will need to pay the bills out of pocket and then submit all original documents to the insurer for a reimbursement claim.
5. How is the premium for a company health plan calculated?
A) The premium is “risk-rated” based on the total number of employees, their average age, the nature of their occupation (field work vs. desk job), the specific benefits chosen, and the company’s past claim history.
About The Author
Mayank Sharma
MBA Finance
He is a professional who brings extensive knowledge and expertise to the field of group health insurance. He has dedicated 7years to helping individuals and businesses navigate the complexities of insurance. Having worked closely with numerous clients and insurance providers, he deeply understands the nuances of group health insurance policies. With a reputation for providing insightful and informative content, he leverages his industry experience to educate readers about the importance of group health insurance and its benefits. Through their articles, Mayank Sharma aims to empower individuals and businesses to make informed decisions about their healthcare coverage, ultimately promoting healthier and more secure communities.
