When is the Right Time to Buy Group Health Insurance for Your Employees?

Right Time to Purchase Group Health Insurance for Employees

Purchasing health insurance for your employees is one of the best things you can do as it has many positive effects on the mind of the employees. A company with a minimum of 7 employees can purchase a group health policy. So when you hire the 7th employee in your company, it is suggested to purchase the insurance plan.

When you provide group health coverage to your employee, the employee gets a sigh of relief as you take off the burden of financial medical emergencies from their shoulders. It not only increases their loyalty towards the company but also retains the old employees as well as attracts fresh talents. Apart from this, the employer also gets tax benefits for providing health coverage to the employees.

Significance of Group Health Insurance for Employees

Here are some points which tell us the importance of offering health insurance for employees-

Offers Comprehensive Coverage

Medical emergencies are uncertain, and this is why it is mandatory to buy a group health insurance policy for the employees. A group health insurance policy protects the employee and dependents of that employee financially during a medical emergency. It offers extensive coverage for all the prominent diseases in the human body. In addition to this, it covers COVID-19 medical expenses and reduces the burden of an employee to a great extent.

Coverage during Employment Period

An employee stays protected from unforeseen medical conditions until he/she is working in a company. Major companies provide health insurance to their employees as a perk because the employees do not have to pay to get the benefits of a group insurance policy. To learn more about the group health insurance coverage, you can contact your company’s human resource department.

Emergency Coverage

COVID-19 has taught us that a medical emergency can arrive at any time. Hence getting health insurance during the COVID can be a life saviour for you as it offers emergency cover.

Easy Claim Process

When you get covered under a group health insurance policy that is provided by the company you work for, the insurance company offers its smoothest claiming process. The insurance companies send some of their people and get the claiming process done. However, with the online process, it has become even easier for an employee to raise a claim.

So, now you guys must be wondering that when would be the right time for you to purchase a group health policy for your employees.

Things to Keep In Mind While Choosing a Group Health Insurance Policy for Employees

1. Check The List of Network Hospitals-Before buying a health insurance plan for the employees, check if it covers all the hospitals in your city as well as metropolitan cities. The list of hospitals gets updated every year, so check them wisely.
2. Wave-off Waiting Period-The waiting period is the time when your employees have to wait to take specific types of treatments. They are of three types-
• Initial Waiting Period –Under this, the employee can raise claims for accident-related hospitalizations for the first 30 days of purchase. No other disease is covered in the first 30 days.
• Specific-Days Waiting Period-It is of 1-2 years for the diseases particularly mentioned in your policy.
• Pre-Existing Diseases-Itcovers pre-existing diseases after 2 – 4 years. Pre-existing diseases are specific diseases that are already mentioned during the first-time purchase of your policy.
3. Family Coverage-Check whether you are covering an employee's family as well because it will cost you double. Take a wise decision before choosing this.

Conclusion

Make sure you are fulfilling all the needs of your employees and keeping the burden of sudden financial pressure off of their shoulders. Choose the right amount of sum insured carefully and read about the inclusions and exclusions of the insurance policy that would give your employees better coverage before buying group health insurance.