Group Health Insurance

What is the right price to pay to buy for a Group Health Insurance policy?

 A group health insurance policy is one that covers multiple individuals under a single policy. The policy is issued to recognized groups for covering their members. A master policy is issued which contains the name of the insured members and individuals who join the group get covered under the policy by default.

The group can choose the sum insured under the policy as insurance companies offer a minimum and maximum sum insured level available. When it comes to the group health insurance premium, however, there are various factors that come into play. These factors determine the premium payable for the group health insurance policy. Let’s understand what these factors are – 

  1. The nature of the group

The first thing that is considered in the premium calculation is the type of group buying the policy. Groups like employer-employee groups, clubs, associations, etc., which have members of specific socio-economic strata, have lower risks. That is why the premiums for their group mediclaim insurance policy are lower. However, for trade unions, farmers, or other groups which belong to certain other sections of society, the group medical insurance cost is higher because the members are prone to health risks.

  1. The number of members covered

This is a simple equation. The larger the number of members covered the higher would be the group health insurance premium and vice-versa.

  1. Sum insured and coverage benefits

If the sum insured is high, the group medical insurance cost would also be high. Similarly, if the plan offers a range of coverage benefits and also extends coverage to the dependents of the members, the premium would be higher.

  1. Add-ons selected

If the group opts for optional coverage riders, the group health insurance premium would increase. This is because each rider comes at an additional premium and opting for the riders would add to the premium cost.

Additional Read: How to customize your group health insurance policy

  1. Discounts available

Group medical insurance plans offer premium discounts that help in lowering the premium outgo. So, if you can avail of discounts under the plan, you can reduce the premium payable.

Ways to minimize group medical insurance cost

When buying a group health insurance policy, to understand the level of premium, weigh in:

  • The sum insured
  • The number of members covered
  • The coverage benefits offered

Then, compare the quotes of different group medical insurance plans. 

Different insurance companies follow different pricing policies. That is why, when you compare group mediclaim insurance plans, you can find different premium rates for the same coverage details. Compare the plans based on the coverage benefits that they are offering, the sum insured level, and the premium rate. Choose the plan that offers a competitive premium rate without compromising on the coverage benefits. You can, then, add or remove optional coverage benefits based on the coverage needs of your members to arrive at the right amount of group health insurance premium.

Moreover, you can use the available discounts to lower the premium outgo. 

Renewal pricing 

At the time of renewals, the group health insurance premium is revised. It is recalculated based on –

  • The number of members
  • The increased age of every member
  • New add-ons selected by the group, if applicable
  • The claim experience in the last year

A discount is usually allowed if there were few claims in the last policy year to arrive at the correct group medical insurance cost.

So, know how the group health insurance premium is calculated both when buying the policy and also on renewals. Also, understand how to minimize the premium so that the outgo is reduced.

What is the right price to pay to buy for a Group Health Insurance policy?

To compare the best group mediclaim insurance plans, you can visit securenow.in or call us at 96966 83999. We would provide you with deeply researched quotes based on your coverage needs. You can, then, compare the quotes and get the best group health insurance policy easily.