A group health insurance policy covers a group of individuals under a single plan. The policy features affordable premiums and provides good health coverage to the insured members of the group. Corporates usually opt for a group medical insurance policy as an employee welfare benefit. The policy covers the employees of the organization for their costs of medical treatments in the hospital and hence provides much-needed financial assistance. Every company should opt for an employee health insurance plan for their employees. Here are some reasons why you need group health insurance:
Importance of group health insurance:
Protection for the employee
A group health insurance plan provides health insurance coverage to the employee in the following ways –
The policy provides affordable coverage
The premium of a group health insurance policy is usually lower than that of independent health insurance plans. Even if employees are to pay the premiums themselves, the coverage is highly affordable. Hence a group medical insurance policy is beneficial for the members of the group.
Additional Read: How group health insurance is cheaper than individual insurance?
Employee health insurance plans cover the employees of the organization and usually extend the coverage to dependent family members of the employees too. Pre-existing ailments are usually covered from Day 1 and the policy provides all the other basic health coverage benefits. These features ensure that the members of the group enjoy comprehensive coverage.
Benefits for the organization
For the organization, a group health insurance plan is highly beneficial. Here’s how:
Boosts employee morale
When employees of an organization see that the organization is invested in their welfare, they tend to become more loyal towards the organization. A group health insurance policy boosts morale among the members of the group whether it is an employer-employee group or any other group. Moreover, in the case of organizations, a comprehensive employee health insurance scheme can help the company attract a talented workforce.
Group medical insurance plans also provide tax benefits. If the group pays the premium for its members, the premium paid can be claimed as an expense. This reduces the taxable profit of the group and lowers its tax liability. On the other hand, if members pay their premium themselves, they can claim a deduction on the premium paid under Section 80D of the Income Tax Act, 1961.
Given these reasons, a group health insurance policy becomes important. Start-ups and SMEs need this coverage for attracting and retaining good talent while large corporations can provide this as an employee benefit to their employees. A group health plan is, therefore, relevant to all types of organizations.
When buying the coverage, here are some things which you should keep in mind –
- Opt for a large enough sum insured so that your members are sufficiently covered against expensive medical treatments
- Ensure coverage for all the members of the group
- Opt for riders to enhance the scope of coverage of the plan
- Compare across plans, then buy the right policy with inclusive features and competitive premium rates
As an organization, you should invest in suitable and comprehensive coverage for your employees. If you are any type of group, the policy will financially assist your members at the time of a medical crisis. So help provide your members with the coverage that they need.