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Benefits of a Group Health Insurance Policy in India
01 November 2020
Health insurance is an indispensable addition to your financial portfolio. There are many types of health insurance policies that you can invest in. One notable type is group health insurance. A group health insurance policy is designed to protect an entire group from a slew of healthcare expenses, both big and small ones. It is typically bought by most companies to cover the health/hospitalisation expenses of their employees. Each employee will benefit from a group health insurance policy.
The most obvious benefit of health insurance is that employees in the workplace are protected against hospitalisation costs. A comprehensive group health insurance policy will cover hospitalization expenses, day-care procedures, maternity benefits, and more. However, one of the core benefits of group health insurance is that it not only benefits the employees but also the employer in more than one-way.
Here is a List of the Advantages of Group Health Insurance -
1. Value for money
One of the primary benefits of group insurance is affordability. The employee benefits from this as they can cover not themselves but their family as well. However, this policy can also help the employer who wants to protect all their employees under an umbrella plan save on corporate taxes. When insurance premiums are too high, neither party gets to benefit. The reason group insurance has a lower cost is because the pool of individuals covered is larger with it. You get value for money.
2. Tax Incentives for Employers
Employees aren’t the only ones who benefit from a group health insurance policy. The employers also receive a tax credit. This credit is offered to small businesses that offer group health insurance to their employees while partly paying for their health insurance premiums. Since they are partially paying, these businesses can qualify to earn back credit on their taxes. This way they can be compensated for the money they are choosing to pay towards the health plan premiums. From the employer’s standpoint, this is one of the best advantages of group health policy.
3. Potentially Boosted Retention Rate
Having employee benefits like group health insurance makes for happy employees. Word of mouth about the company’s benefits spreads and you not only attract more employees but also get a team of individuals that is unlikely to leave the company. Hence, offering benefits like a group health insurance policy has the potential to boost your company’s retention rates. The higher the retention rate, and the happier your company, the more likely it is to perform well.
4. Family Cover
This is one of the advantages of group insurance that depends directly on the policy provider. However, certain group health insurance plans also provide a family cover, including senior citizens. This makes them much more comprehensive as the dependents of one’s employees can also be offered financial aid in their time of need. If not directly covered by the policy, many group health insurance plans also provide the option for the individuals covered to purchase a separate family health insurance floater that can be added to their existing group health insurance.
5. Convenient to Claim
Instead of scampering around different health insurance companies to claim your insurance, with a group health insurance plan, the process is much more streamlined. You simply have to send your relevant hospital or medical bills to your employer. Since multiple employees are covered under a single plan, your employer is responsible for ensuring that your claim request is approved. This way employees can easily enjoy the cashless treatment.
The benefits of group policy extend beyond just the employees to the employers as well. The more people are covered under a single policy, the more likely the insurance provider will have added benefits. With Max Bupa’s group health insurance plans these benefits are the option to create sub-limits to an existing plan or provide additional benefits for various employees/ members in the group. One receives a decent amount of coverage against major health care costs without having to pay expensive premiums.