What are Group Health Insurance Plans Requirements for Small Businesses?
In India, small-scale businesses play a vital role in generating employment, increasing GDP, enhancing the financial status of the people, developing rural areas, and removing regional imbalances. But for a small business to stay consistent in the market, they should retain their human resources. One of the best ways to retain your employees would be to invest in group health insurance for them. Read this article to know the importance of group health insurance for employers of small businesses.Read more
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Benefits of Group Health Insurance
The objective of issuing group health insurance plans for businesses is to retain their employees for accomplishing the company's goals. Usually, the majority of the large businesses offer group health insurance plans to maintain their goodwill and offer medical protection to their employees who are working for the betterment of the organization. But gradually, small businesses are also understanding the need for group health insurance for their employees.
A group health insurance plan for employees is considered an investment for the organization. It motivates their employees to perform better and creates a sense of loyalty in them for the business. Also, it minimizes the medical expenses of the employees and gives them a sense of financial security. Moreover, the employees also feel a sense of belongingness towards their organization and are always ready to go the extra mile to fulfill their employer’s demand.
Why Small Businesses Require Group Health Insurance?
Group health insurance plans cost less than an individual health insurance plan as they cover the risk for a larger group of people. In simple words, group health plans cost less per person. Let's find out how a group health insurance plan helps small businesses in India:
1. Expanding Your Small Business
If you are planning to scale up your business, offering financial security to your employees is the key to retaining the top talent of your organization. A group health insurance plan for employees helps to expand your business as it attracts potential talent and retain your human resources. It works as one of the biggest motivators for employees to work dedicatedly towards their organization.
2. Adopting Advanced Technologies
With the emergence of digitalization, employees are enjoying the no paperwork and fast claim process of group health insurance through their mobile phones. Thus, it gears small businesses to raise claims faster and promotes a hassle-free business environment.
3. Enhances Your Recruitment Process
Offering group health insurance helps small businesses to reduce the hiring cost by retaining their best employees. If you are providing group health insurance, you can also distinguish your business from your competitors. Moreover, you can prioritize the well-being of your employees and acknowledge them as priceless assets to your business. Thus, you end up enhancing your recruitment process.
A group health insurance plan also gives you benefits of tax deductions for your small business. Providing group health insurance means paying monthly premiums for employees that are tax-deductible.
5. Affordable Premiums
Instead of buying an individual policy for each employee, a small business can buy group health insurance for all their employees. The premium for group insurance is comparatively low than buying individual health plans for each employee. This is because the overall risk is divided among all the employees and so, it helps to decrease the liabilities of the insurer. As a result, small businesses enjoy low premium rates.
6. Promotes Healthy Company Culture
Offering group health insurance for employees promotes a healthy company culture. By offering group insurance, you can establish employees' relationships within the organization and amplify their proficiency & creativeness. Also, it enhances the employees' productivity and financial growth, which in turn leads to better consumer satisfaction.
Which Small Businesses Can Buy Group Health Insurance?
Buying group health insurance for your employees is one of the ways to encourage your employees to work dedicatedly. According to the Insurance Regulatory and Development Authority of India (IRDAI), all small businesses like-food joints, legal & consultancy services, day-care services, educational institutes, etc. having a minimum strength of 7 employees can buy a group health policy.
Ultimately, buying group health insurance for employees helps to create a compelling employee benefits package that will attract future human resources and retain current employees. Moreover, it is more cost-effective for small businesses to offer group health cover as it is more affordable than buying individual health plans. Thus, it increases employees' morale and thus, leads to higher productivity and less absenteeism.
If you own a small business and have at least 7 employees, you can buy group health insurance for employees. It will not only give them financial protection against medical emergencies but will also help you as a business in tax savings.
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