Group Health Insurance for Small Business

Why do Small Businesses Need Group Health Insurance Policy?

Group health insurance goes a long way to ensure employees feel valued and safe in an organization. When an organization offers group health insurance, employees and dependents appreciate the financial and health safety provided to them. This motivates them to perform better at their job and it creates a sense of loyalty towards the organization. Here are a few advantages of group health insurance for a small business:

• Employee Retention: Motivated and happy employees help reduce retention rates and attract a talented workforce, thereby building a great company culture.
• Low Premium Leading to Cost-effectiveness: Since group insurance schemes have a low premium, they are a cheaper option compared to an individual policy.
• Flexibility in Premium Payment: Depending on the company’s policy, the employer can select the payment premium option (monthly, quarterly, yearly).
• Saves Time for HR: Small businesses usually do not have large administrative teams. A group health insurance policy from companies like Policybazaar can help reduce the overall time, effort and cost for the organization.

Group Health Insurance for Small Businesses

Choosing the right group health plan for your employees is as important as having one. As a decision maker, you need to keep in mind various factors, including the need of your employees and the cost aspect of the plan. Thorough knowledge of the offerings, the benefits, and the ease of claim settlement helps in taking an informed decision.

We list a few steps that can guide you choose the right group health plan.

1. Compare Various Policies

   Once you have understood your workforce’s requirements, it is important to have some hands-on information on the various policies available in the market that fall under your need bracket. Compare these policies based on the features, pricing, claim settlement ratio, availability of add-ons, etc. Make sure you weigh the pro and cons of each policy well before taking the plunge.

2. Look for Maximum Coverage

   Group health insurance covers multiple people under various age groups with different lifestyles and different risks. Hence, it is recommended to look for maximum coverage for your employees.

3. Understand Policy Terms

   Every policy includes a set of inclusions and exclusions, in addition to many other terms and conditions. Make sure you carefully understand the terms and exclusions to avoid any surprises at the time of claim. Also, keep your employees aware of these conditions, as they might not be eligible for claims.

4. Check for Sub-limits and Network of Hospitals

   Exceeding sub-limits would mean the employee will have to pay the additional cost from his pocket. Thus, make sure you opt for plans with higher or no sub-limits.

   The network of hospitals is a vital aspect of any group insurance policy. This will help your employees get access to the best treatments while having proximity to their homes, making them highly comfortable and reducing transit costs.

Check Claim Settlement Ratio of Insurance Companies

Regulatory authority of insurance companies in India, that IRDAI, releases a list of claim settlement ratio of the insurance companies that tells the percentage of claims settled by the insurance company out of total number of claims received in an year. So the higher the percentage, the higher will be the chances of a group health insurance for business claim to get settled.

Conclusion

Choosing the right group health insurance for small business is often considered a challenging task. With myriad options available, selecting one that fits best for the whole organization is indeed a confusing and risky proposition. With Policybazaar you can compare, customize and get access to the best customer support, and, quick and hassle-free claim settlement procedures, all at the best rates.