Group health insurance plans are the healthcare benefits offered to the group, company or all the eligible members of typically a group of employees. Most of the companies offering healthcare benefits for employees also allow them to avail cover for their dependent family members such as a spouse, dependent children, and parents. That means a group medical insurance policy is a single policy covering a group of employees including their dependents sometimes.
Treated owners of the business as employees, sole proprietorship businesses and partnership businesses with more than one employee also qualify for group medical insurance plans. However, if it’s a family-led business run by a husband and wife, both husband and wife can avail of group health insurance coverage. If the business meets all the requirements as needed to qualify for this insurance.
Additional Read: How many employees a company should have to buy a Group Health Insurance Policy?
Eligibility requirements for Group Health Insurance Cover for family businesses :
Most insurance companies offer group health insurance plans based on certain specific rules, terms, and conditions for various types of policies. Insurance companies commonly provide group health insurance plans that are tailored to specific rules, terms, and conditions for different policy types. These plans are designed to cater to the healthcare needs of a group of individuals, typically offered to employees of an organization or members of an association. The rules, terms, and conditions may vary depending on factors such as the size of the group, coverage limits, network hospitals, waiting periods, and pre-existing condition coverage.
Your spouse cannot be the one and only employee for the sake of availing of group medical insurance benefits. However, if your business has other employees (family members and non-family members both), then you and your spouse can avail of the benefits of group health insurance coverage along with the other members of the group or employees of your company. These requirement criteria may vary from one insurance company to another insurance company.
It is crucial for policyholders to carefully review and understand these specific provisions to ensure they are aware of the coverage and any limitations associated with their group health plan.
Illustration of group health insurance coverage for husband and wife:
Let’s say you have a sole proprietorship firm with your wife being the only employee of your firm. Then, you would not be able to avail of group health insurance coverage. In case, there are two more people working in your firm (be it a family member or a non-family member), you and your wife can avail the policy for employees as a small business in India.
In the case of family businesses, availing of the policy’s coverage for the family members involved in the business can be an ideal option for various reasons.
Advantages of opting for a group health insurance for your firm or business :
- Availing coverage through group health insurance plans lowers your insurance cost as you get the desired coverage from other employees (including both family members and non-family members).
- Group insurance plans come at a lower cost in comparison to individual health insurance plans. Due to risk pooling and the difference in underwriting processes.
- As a business owner, along with getting health insurance coverage at an efficient rate, you will also get tax benefits.
So, yes! Husband and wife can avail of group health insurance plans if they are running a family business. And if the insurance criteria applicable for the ‘’small business’’ is met.
To learn more, visit SecureNow where you can compare insurance quotes online for making the right selection of group insurance or an individual plan.
Written By-
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.
