How much Health Insurance do you need for Start-ups
- DetailsWritten by PolicyBazaar -
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Updated date : 19 February 2021
When you start a company, it becomes prone to certain kind of risks. One little mistake can cost you a lot. When the entrepreneurs begin their journey, their prime focus is on the profits, loss and most of all hiring new talents who will help in growing their business and in the middle of all this, they forget about the insurance. Insurance for their employees as they become a part of that company, it also becomes a huge responsibility of the employer to take care of employee’s well-being and health.
However, there are several reasons behind entrepreneurs/employers not opting for the health insurance but the budget crunch and the added investment Entrepreneur/employer will have to make in order to purchase the health insurance in the initial period. That’s where they need to realize that investment in health insurance creates a good will among employees, which eventually makes them more loyal to the company.
It works like a barter system, apart from salary owner of the company takes care of employee’s well-being and health care and in return owner gets better performance and better results from the employees. So, here we will tell you about how much health insurance coverage you need for start-ups.
Factors about Health Insurance for Start-ups
If the owner of the company offers health insurance for the employees, it reflects the good-will and care of the owner towards employees. It is not just beneficial for the employee but also for the entrepreneur/employer depending on certain factors.
The health insurance for start-ups generally costs less than it would cost an individual and also benefits the employer in tax reductions. If the employer figures out what the employee wants and needs, then set a budget accordingly then buy the health insurance plan which comes under the budget and provide enough coverage for the employees.
There are certain factors like number of employees and their age, the number of dependents in each of their families and location. There are certain benefits that come along with the health insurance which makes it important for the employer to purchase a health insurance plan for start-up.
Benefits of Health Insurance
Health is wealth, and just like this good health can also bring wealth. Health insurance becomes a big motivational factor for the employees. When you’ll value your employees health and provide health insurance then obviously in return they will bring value to your start-up and stay motivated. That will also make them stay with you for longer period.
The employer gets some added advantages apart from getting motivated employees. The start-ups who offer health insurance for their employees by recording their investment to the health insurance plan as an expense which will later receive tax advantages. The type of health insurance that is required for the start-up is Group Health insurance, so let us tell you why you need a group health insurance for your start-up.
Reason Behind Group Health Insurance Requirement
Since the start-up companies have become very employee-centric and hence they offer health insurance. There are some reasons why group health insurance is required for both employee and the employer.
- Wide Coverage and Benefits
The group health insurance plans provide wider coverage and more benefits than the health insurance plan for an individual.
- Customization is Available
There are group health insurance providers online which offer customization in the health insurance plans before purchasing.
- Lower Premiums
Not just a wider coverage but group health insurance plans are available in lesser premiums as compared to the health insurance plan for an individual.
Concluding it with!
A health insurance for the employees of a start-up or a small company is very beneficial for both employer as well as the employee. If you are and Entrepreneur/Employer then you should keep all the above mentioned factors in mind and purchase the health insurance plan for your start-up online because it saves you money like the agents fees and all the unknown expenditures. Buying health insurance online is the best possible way.
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