Benefits of a Group Health Insurance

A group health plan offers coverage to a group of people, such as society members, employees of an organization, or a community.

Several large companies acquire group insurance plans for their employees. The company pays the premium for the policy on behalf of the covered employees. In most cases, at least 10 members are required to avail of a group health plan.

There are numerous advantages of procuring group health insurance. Because a large number of individuals are covered under a single plan, the insurance companies offer significant discounts on the premium. Therefore, group insurance plans are more affordable when compared to an individual health insurance policy.

Here are the benefits for the employees covered under a group plan:

1.     Default insurance coverage

Every member in the group is automatically covered under this kind of a health plan. Therefore, employees are secured with some basic minimum coverage even when they do not have an individual health insurance plan.

2.     No waiting period

When an individual acquires health insurance, there is a certain period from the date of purchase when the benefits are not available under the policy. Moreover, existing health conditions known as pre-existing diseases are also not covered during the waiting period, which may be up to four years.

However, there is no such waiting period for a group plan. Therefore, every member covered under the policy receives coverage from the first day.

3.     No medical check-up needed

Some insurance companies require individuals to undergo medical check-up and meet stringent acceptance norms when they apply for a health plan. However, coverage under a group plan is available without undergoing any medical check-up.

4.     Maternity coverage

Almost every insurance company offers maternity coverage from the first date of insurance coverage. Therefore, maternity expenses are covered when an individual enrolls under the plan as soon as she joins the organization.

5.     Wider coverage

Several insurers offer wider coverage under a group plan when compared to an individual plan. Therefore, an individual may be able to cover his parents, spouse, children, and grandparents under the group insurance policy.

Benefits to the employers

1.     Tax advantages

Employers enjoy certain tax benefits under the Income Tax (IT) Act. Therefore, companies are able to reduce their tax liability and save expenses when they provide group insurance for their employees.

2.     Employee motivation and retention

Healthcare costs are constantly increasing and providing health insurance to employees is an additional advantage. Companies are able to keep their employees motivated because they know that their medical expenses (if needed) would be covered under the group plan. An increasing number of organizations are focusing on the well-being of their employees and corporate health insurance plans that cover not only the employees but their family members too are used to attract and retain talented employees.

3.     Easy payment options and affordable

Employers may pay the premium either on a monthly, semi-annually, or an annual basis as per their requirements and cash flow situation. Additionally, insurers offer significant discounts because a larger number of individuals are covered under the group plan. In addition, companies can o reduce the premium expense when they choose to buy group health insurance plans online because insurance companies are able to eliminate the agent commission when they sell policies through their websites.

Companies may choose additional riders such as an accidental cover or critical illness cover for higher protection. Several other features are also offered by insurers and checking these out is recommended.


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