This builds a strong relationship between the employer and the employee as group health insurance policy is usually provided by several organizations. The group health insurance costs less for an employee than the individual health insurance. The premiums are lesser in the group insurance policy than individual health insurance. Group health insurance policy not just motivates the employee but also makes the employee loyal towards the organization.
If you’re running a company and planning to buy a group health insurance policy, there are several factors that you should consider before purchasing the policy. But before that let us tell you why you should consider purchasing a group health insurance policy.
Reasons to Purchase Group Health Insurance
There are several reasons to purchase a group health insurance policy for your employees.
- The group health insurance policy cost less for both employer and the employee.
- Group health insurance provides good coverage and covers many medical expenses.
- The group health insurance policy helps the employee protect their savings.
- The companies get tax benefits if they provide group health insurance.
- The company that provides group health insurance attracts employees more than the ones which don’t.
- Some of the group health insurance company provides coverage for pre-existing disease as well as maternity.
Now let us tell you about the factors you should consider before purchasing a group health insurance policy.
Factors to Consider before Buying Group Health Insurance
Even a single visit to the hospital can cost like a fortune to a middle-class employee. Keeping the employee's benefit in mind the employer should consider these factors before purchasing a group health insurance policy.
How much Sum is Insured?
While buying the group health insurance policy, the employer should always go for a high sum insured. Even a single day spent in ICU in a hospital can cost you more than 1-2 lakhs approximately. If the employer provides adequate health insurance cover to help the employee that deals with the hospital expenses, an employer should consider a minimum cover of Rs. 5 lakh which would provide enough coverage in case of medical emergencies.
Look-out for Premiums
The employer should look out for the premiums of the different health insurance policies. An employer should look out that the employee does not have to compromise with any important feature that particular policy provides. Look for low premiums but make sure to keep all the necessary features intact.
Check for Hospital Network
It is one of the most important factors. The employer should always check the network of hospitals while purchasing group health insurance. There are times when you send an employee of yours for an important meeting out of town and if the hospital network provided by the plan you have adopted can provide a hospital in that particular town. It can help protect the savings of the employee as well as yours since that employee went for an official meeting.
Buy Policy Online
Buying a group health insurance policy can be very cost-effective. It excludes the agent’s fee and provides an end number of features. It is suggested to purchase a group health insurance policy online saves you time and money as well as saves you from all the hassle you would have to go through while doing it offline. It is a paperless process. There are several health insurance providers online that let you compare among different companies and plans. You can make changes at any time in the existing group health insurance plan as well.
Purchasing a group health insurance policy is the best way to keep your employees motivated and work with full force for the company. We have told you about almost all the factors that you should consider before buying a group health insurance policy. Also, buying it online will be very beneficial for you and your employees.