Tips for Choosing Health Insurance for Your Small Business

For small businesses, the decision to offer a group health insurance policy for your employees can be a huge task. A comprehensive health insurance plan can help attract and retain talent, but choosing the right reasonably priced plan can be hard. In the article below, check out tips to choose health insurance for small businesses that help you maintain the balancing act.

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Tip #1: Compare different group health insurance policies

Researching and comparing various policies available in the market is the first step towards choosing the right health insurance. You as a policyholder must understand the basic structure of the plan available, its coverage, premium, and other features.

Tip #2: Buy adequate coverage

Ensure that the coverage opted for is adequate. Low or insufficient sum insured may not be helpful to your employees. Also, consider higher coverage if you plan to offer group insurance to dependents of your employees. Since a single sum insured applies to the employee and his dependents (if included), higher coverage is always recommended.

Tip #3: Ask your employees about their needs

Your employees are the prime beneficiaries; thus, it is essential to consider their needs and requirements. Employees these days look for proactive, need-based, and comprehensive plans. Try to incorporate their requirements while choosing the plan. For instance, if your workforce is mainly between the age group of 25-45 years, a maternity benefit add-on would be highly valuable.

Tip #4: Consider covering their dependents

Medical expenses can burn a hole in your employees’ pockets. These medical emergencies may not solely be for the employee but also for his dependent family. It is thus a good move to consider covering their spouses, children, or even dependent parents in a group health insurance policy.

Tip #5: Learn about the inclusions and exclusions

Exclusions and inclusions form the crux of any policy. It is always recommended to learn about them and make your employees aware to avoid any unpleasant surprises at the time of claim.

Tip #6: Check the list of networks of hospitals

The larger the network of hospitals offered in a policy, the better.. Since your employees may be situated in different parts of the country, or city, checking the hospital network list is highly suggested.

Tip #7: Check the sub-limits and other terms and conditions

Sub-limits on room rent, ambulance charges, consultation fees etc., are crucial as they reduce the overall claim amount for your employee. Also, learning and informing your employees about the fine print or the terms and conditions is very important.

Tip #8: Cost matters

With hosts of features and add-ons available, it is easy to get carried away to provide your employees with the best. However, choosing the best group insurance scheme is as important as choosing the right one. Select a policy that has an appropriate cost-benefit ratio.


Buying health insurance from your employees is imperative. The significance of this cannot be emphasized enough. It will positively impact your employees, as they will feel valued and cared for, resulting in a growing business. The above tips to choose health insurance for small businesses can help you weigh all your options and take the right decision.

Written By: PolicyBazaar - Updated: 18 October 2022
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