As the name suggests, a group health insurance is an insurance policy covering a specific group of people with a particular coverage amount. The coverage that the insurer provides benefits the whole group and their dependents.
The groups are usually the employees of companies, housing societies, etc., wherein the employer or the organization pays the premium. In employee group health policy, coverage is active only till an employee is part of the organization. Hence it is wrong to compare a group health insurance with an individual policy in this case.
The group health insurance is beneficial for both employers and employees. Let us understand the important things you should know before applying for group health insurance.
Importance of Group Health Insurance for Employers
It generates goodwill in the market for the employer. It attracts many individuals who would potentially want to work with a company that provides health coverage to its employees. The employees feel relaxed and safe as they know that they will not have to pay from their pocket for any medical expenditure.
Cost Cutting Aspect
A group health insurance is a better and affordable option available in the market than individual health insurance. Since the insurers allow many employees to be insured under a single plan, the premium costs are drastically reduced.
A group health insurance is a relationship between two corporates. Hence, both the buying and the claim settlement processes are a lot easier and faster.
It is beneficial for employers to claim tax deductions on the total premium paid under some sections of the ITA (Income Tax Act).
Importance of Group Health Insurance for Employees
Easy Claim Settlement
As a group health insurance plan is a tie-up between two corporations, the claim settlement process is easier than that of an individual health insurance policy.
Basic Health Coverage
Employees benefit from basic health coverage that can be used if an employee is hospitalized or has incurred some medical expenses. As the employer has already paid for the group insurance cover, the insurer will reimburse these expenses as per the policy terms and specified coverage limit. Thus, the employees do not have to pay the medical/hospital bills from their respective pockets.
Some group health insurance plans provide protection cover to the employees as well as their dependent family members. Dependents may include parents, spouses, and children.
Enhancement of Plan
After getting insured under a policy, employees can check with the insurer about all diseases that are covered by the policy. If they wish to enhance their protection cover or take an add-on cover as per their individual needs, they can contact the insurance agency.
Less Financial Stress
Any medical emergency can cause financial stress, as many times, we are unprepared for such financial expenditures that create a hole in our wallet. So, the group health insurance plan helps the employee to remain stress-free.
How does it work?
The insurance agencies, banks, or financial institutions that provide health insurance usually have a group health insurance plan covering basic health expenses, accidents, etc.
The employer, who wishes to provide health coverage for his employees, contacts one of the insurance companies and gets the employees covered under a group health insurance plan.
Whether you are an employee or an employer, you have to check the policy papers thoroughly to ensure that the important and basic diseases are covered under the health insurance policy.
If employees are not satisfied with the policy, they can get the policy updated. Employees may also buy a new health insurance policy by visiting the Bajaj Finserv website for better features and coverages.