Group Health Insurance for Start-up Companies
Being a start-up means you likely survive with limited resources and plenty of things to execute. Group health insurance for start-up companies often takes the backseat because few realise its importance, or it doesn't bear a financial impact until a major calamity strikes their workforce. Group health insurance is no longer limited to large corporations, and start-ups have started realising it, especially after the pandemic.Read more
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Why Should Start-ups Offer Group Health Insurance?
Group health insurance for start-up companies is a win-win situation for employers and employees. Recent trends show that employees prefer joining hands with organisations that take care of their mental and financial well-being.
As for employers, the added benefit of retaining top talents without spending a lot of money makes getting group health insurance a lucrative prospect for them, too.
Plus, with the IRDAI making it mandatory for businesses to have group insurance for employees post the pandemic, it gives no option for organisations but to have it for their workforce.
Benefits of Group Health Insurance for Start-ups
Health insurance benefits an organisation of any size, be it an established or a start-up. Here are some reasons why start-ups should opt for GHI for their workforce -
Attracting and Retaining Talent
Having health insurance indicates that you care. It also transcends to your employees feeling a sense of belonging, pushing them to improve their operational efficiency and enabling the organisation to achieve lower employee turnover.
Improving Employee Morale and Productivity
A group health insurance for start-ups acts as a security for its employees. When employees feel they are being taken care of, it propels them to work harder to achieve the overall organisational goals.
Cost-effectiveness for Both Employers and Employees
Group health insurance reduces the average cost per person, which makes it super cost-efficient for the organisation. As for employees, most organisations pay the premium on their behalf, meaning they only bear a part of the premium or avail it for free.
Group medical insurance for start-up companies also lets organisations enjoy tax deductions against it. Group medical insurance outflow incurred by the company can be claimed as a business expense and is treated as part of the expenses under the ‘Profit in lieu of Salary' head.
Customizing Group Health Insurance Plans for Start-ups
Group health insurance for start-up companies is popular because of its flexibility. These offer more coverage than most policies. Also, if you are looking for a customised option that covers your employees' specific needs, most insurers are happy to create the best-tailored plan for you.
In addition, GHI for start-up companies also offers diverse add-ons which can add to the overall value quotient for your workforce. For example, wellness programs are one of the most common add-ons for a GHI policy whereby wellness experts conduct regular sessions to take care of your employees' mental well-being.
Overcoming Challenges in Implementing Group Medical Insurance
Implementing group medical insurance can be a difficult task, especially for start-ups. Firstly, these organisations suffer from a high workforce churn rate. While it is already challenging for GHI for start-up companies to address the needs of a diverse workforce, the high employee turnover rate makes it more of an arduous task to ace.
Budgetary restrictions further heighten the issue. Most start-ups walk on a thin rope regarding their monetary situation and can find it difficult to allocate money for group medical insurance for their employees. Do you know you can get policies starting at as low as INR 110/month (per employee) listed on the Policybazaar for Business portal?
A tech start-up with around 18 employees entered into a group health insurance policy contract with an insurer that covered its employees and their dependents. The insurer was happy to offer insurance to all 18 employees and their dependents.
After a few years, the mother of Mr. Rajesh, one of the covered employees, fell severely ill, and her treatment cost a lot of money. Mr. Rajesh initially took care of all the outflows, and his mother recovered within a few days.
After a few days, Mr. Rajesh raised the claim with the requisite supporting documents to the insurer. His claim request was accepted, and the insurer settled the dues within 92 hours.
Tips for Choosing the Right Group Health Insurance Provider
Here are some invaluable tips to keep in mind while looking for the right GHI provider for your start-up -
- Look at the claims support they offer. Many insurers provide additional support, such as cover and add-on advice, at no extra cost.
- Evaluate your start-up's and its workforce's specific needs and ensure that the insurer can accommodate them with ease.
- You will find it easier to scale when your partners scale alongside you. So, look for a provider who can scale the coverage seamlessly and sustainably as you expand.
Health insurance has always been a talking point for large organisations, but with IRDAI making it mandatory for all organisations, start-ups have also started paying heed to it. Start-ups, being in their nascent stage, should pay more heed to employee well-being, and group health insurance is one of the best ways for them to showcase their care. So, if you are still pondering which policy to buy, head over to Policybazaar for Business and find a range of GHI for start-up companies options.
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