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 group medical insurance policy is a single policy issued to a group of employees including their dependents sometimes.
As owners of the business are treated as employees, sole proprietorship business and partnership business with more than one employee also qualifies for group medical insurance plans. However, if it’s a family-led business run by husband and wife, the group health insurance coverage can be availed by both husband and wife if the business meets all the requirements as needed to qualify for this insurance.
Coming to the insurance eligibility requirements, group mediclaim insurance plans offered by most of the insurance companies will have certain specific rules, terms and conditions for various types of policies. Your spouse cannot be the one and only employee for the sake of availing 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 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.
Let’s understand this with an example. 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 group health insurance coverage. In case, there are two more people working in your firm (be it a family member or non-family member), you and your wife can avail group health insurance for employees as a small business in India.
In case of family businesses, availing group health insurance coverage for the family members involved in the business can be an ideal option for various reasons mentioned below –
- Availing coverage through group health insurance plans lowers your insurance cost as you get the desired coverage with other employees (including both family members and non-family members). Group insurance plans are offered at a lower cost in comparison to individual health insurance plans due to risk pooling and with the difference in underwriting processes.
- As a business owner, along with getting the health insurance coverage at an efficient rate, you will also get the tax benefit on the health insurance benefit offered to employees. The total premium paid for group medical insurance plans can be claimed as expenditure by you as a business owner.
So, yes! Husband and wife can avail group health insurance plans if they are running a family business and if the insurance criteria applicable for the ‘’small business’’ is met.