Group Health Insurance: What Makes It a Better Choice?
Why Choose Group Health Insurance for Your Workforce
The advantages of group health insurance vs individual health insurance have long been a topic of discussion ever since the government asked all employers to offer health insurance to their employees. Buying health insurance for employees may serve as a unity among people in an organization.
In this blog, you will learn why you should pick group health insurance over individual health insurance and why employers are providing it even though it costs a lot of money for the company.
What is Group health insurance?
Group health insurance is a type of Health insurance plan that offers Coverage to the employees of an organisation.
These policies are typically provided by banks, business associations, organisations, employers to their employees, housing societies, etc., with the organisation paying the premium.
Need for group health insurance
Corporate health insurance and group health insurance are both used interchangeably. The main advantage offered by companies under a group health insurance policy is that employees have the choice to include their spouse, children and, in some cases, parents as well.
On the other hand, Employers can gain the advantage of low cost, tax deductions, improving employee retention through group health insurance plans.
What differentiates group insurance from individual insurance?
Group Health Insurance covers a group of people, usually employees of a company or members of an organisation. An employer or organisation typically offers it as a benefit to its employees or members. Individual Health Insurance, on the other hand, is an insurance that individual purchases to cover themselves and their family.
One key difference between group and individual health insurance is how the premiums are determined. Grouphealth insurance premiums are usually based on the average risk among the group members, while individual health insurance premiums are based on the risk of the individual policyholder.
This means that grouphealth insurance premiums may be lower than individual health insurance premiums since the risk is spread out among a larger group of people.
What does group health insurance policy cover?
Know how does buying health insurance works. Coverage under group health insurance plans will differ depending on several variables. However, all the group health insurance policies cover the following for the employees. Some of the significant coverage include:
- Emergency assistance
- Ambulance care
- Hospitalisation
- Neonatal care, Postnatal care and Pregnancy
- Medications and Prescriptions
- Children’s services (including oral and vision care)
- In-patient hospitalisation expenses
- Pre-hospitalisation and post-hospitalisation expenses
- Daycare procedures
- Chronic illnesses like arthritis, diabetes, etc.
- Cover for pre-existing diseases
- Option to include spouse or kids, etc.
- Cashless hospitalisation benefit at network hospitals
- No requirement for medical screening
Benefits of purchasing group health insurance
The following are said to be the prime advantages of selecting a group health insurance plan.
- Instant coverage with no waiting period
- No medical examination is necessary.
- Pre-existing condition coverage starting on day one
It is crucial to remember that employees can only benefit from a corporate health insurance policy while they are employed by the company that provide it. Employeeswill not get coverage under Group Health Insurance plans once when they leave their jobs.
How to buy group health insurance?
Buy the best group health insurance policy by analyzing the pros and cons of group insurance from different companies. After knowing the advantages of group health insurance you choose, through comparing many policies, choose the best one. Pose questions to ask when buying health insurance from your insurance provider. Here is the procedure to buy group health insurance:
- Go to the official website.
- Choose your preferred group health insurance plan and the sum insured as per the eligibility.
- Give necessary information about your company and workforce.
- Customize the group policy as required.
- Patiently review the policy terms and conditions, then quote carefully.
How do I Select the most effective Group Health Insurance Policy?
The decision to purchase a group health insurance plan rests with the company. An employee cannot buy the group health insurance policy. To provide coverage to the employees, following are some of the features that employers need to check before buying a group health insurance policy.
1. Coverage
A group health insurance plan’s coverage is its most crucial feature. Employers must look the coverage limits and the entire Sum Insured of the policy.
2. Service
Another aspect to consider when purchasing group health insurance for your employees is the service quality.
3. Geographical Coverage
A perfect group health insurance policy, would offer extensive geographic coverage. Additionally, it’s crucial to look at how many hospitals are spread out across the nation and included in the insurer’s network. Only hospitals that are part of an insurer’s network offer a cashless claim option.
4. Premium Amount
Another essential factor to think about when buying group health insurance is the premium. You must confirm that the coverage received justifies the premium paid.
5. Exclusions
Check the group health insurance plan’s exclusions in addition to the coverage to avoid any future inconveniences for your personnel.
Summing up
We have discussed above the benefits of buying group health insurance. Compare and analyze the advantages and disadvantages of group health insurance from different companies, then choose to list out the group health insurance benefits in your mind. After that, choose the top plan that suits you.
Having a group medical insurance can serve as a useful safety net in the case of medical emergency.
Additionally, you should not be dependent on the insurance provided by your company, you should ideally have some individual health insurance policy.
To know more about the benefits of group health insurance policy, visit the official website of Star Health Insurance.
HELP CENTRE
Confused? We’ve got the answers
<p>We’re Star Health. We offer the coverage that’s designed to help keep you healthy. It's the care that comes to you, and stays with you.</p>
Is buying health insurance worth it?
<p>Yes, a health insurance plan is worth it, as it could offer financial protection and access to healthcare.</p>
Why is group insurance cheaper than individual?
<p>Group insurance is cheaper than an individual insurance plan as the risk is spread across a large group of people, which reduces the cost per person.</p>
Is buying health insurance tax deductible?
<p>Section 80D of the Income Tax Act permits tax deductions of up to Rs 25,000 each financial year on health insurance premiums. But check if your top plan that you buy has tax deductions.</p>
Why is buying health insurance so hard?
<p>Some insurers offer extremely limited coverage for their health insurance plans, which can deter individuals from adopting health insurance plans. Moreover, a few health plans feature multiple waiting periods and exclusions.</p>
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