Why You Should Consider Group Health Insurance

Benefit pack goes a long run. It proves that the well-being and success of the employees matter to the employers, and they care for them. And when one starts from the scratch, while fixing the other things, should consider adding group health insurance to the insurance kitty!

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*Premium starting from ₹110/Employee/Month for ₹1 Lac Sum Insured covering Health & Wellness Needs (excluding GST)
#Premium may vary on the basis of coverage type & add-ons
**All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

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Disclaimer: The above plans and premiums are for 1 Lakh sum per life per month covering Health and Wellness needs of 7 Employees, 5 Spouse & 2 Kids below 35 years of age. The premium is inclusive of GST and do not cover PEDs & Maternity. Standard T&C Apply PolicyBazaar does not rate, endorse or recommend any particular insurer or insurance product offered by the insurer.

In this article, we try to break down the various advantages of having group health insurance, and how simply opting for this plan an employer can retain talent within the organisation. Here they are:

Group health insurance

 How Does an Organisation Estimate its Profit?

 Let’s first discuss how the employers analyse the benefits process. The most important segments they may consider are:

  • How to save as much as possible
  • Doing everything possible for the employees
  • Drawing a line between the employer and employee

Most of the companies consider the cost, while some others focus on team value. And 40% think it’s the blend of both.

This is the prime reason why group health insurance is becoming more popular day by day. While it helps the employees find the balance in their lives by keeping them financially protected during a crisis, and it also enables the employers to do justice to both balance sheet and employees’ health-related needs. Here are the benefits of a group insurance plan:

Health Insurance: The Term

 The idea of group health insurance is simple. When one becomes a member of a health policy that covers more than one member or a huge group with a single premium, it   is called Group Health Insurance. Normally, big business units opt for this plan to secure their employees.

 The policy is tailor-made as per the health requirements of employees and can be easily bought at a cheaper price. It is beneficial for the insurance companies too, as they   avail a huge premium. This big profit comes at a comparatively lesser premium.

 However, there is no harm in availing an individual health plan separately; let’s not dig into this now and concentrate on the benefits of a group health plan only.

Easy Enrolment

 A health insurance benefits an employer in developing an environment where people are financially stress-free when it comes to their health. When someone joins a company, involving in the hassle of insurance would be the last thing they want. With the scarcity of time, people prefer to avoid this. But with a group health insurance, new employees to the employer's health plan without worrying about the rigid procedures. It is more convenient than buying a separate individual plan.

Employer Can Retain the Talent

 It is helpful in retaining talent. Replacing an employee would be a costlier affair, especially when it is a small business or a start-up. A small organisation can’t afford a group health insurance. But research says that  80% of the workers find comprehensive health coverage the biggest motivating factor when questioned whether they wish to stick to their organisation or not. MetLife says that the main motive in offering health insurance to employees is to retain them as hiring new employees costs around half of their yearly pay.

Save More on Wallet

 It is a secret weapon when one wants to save on tax. Since everything employers do is for business purposes, a group health insurance is eligible for tax deduction. In addition, the premium amount that the employees pay for the group health insurance is liable to be pre-taxed. Hence, their taxable earnings become lesser, so does the payroll taxes.

No Health Check-up

While opting group health insurance, the policyholder doesn’t need to undergo a health check-up. Employee’s family is automatically included in the employer's group policy from the very first day. This way one can avoid the hassle of a pre-health check-up.

No Waiting Period

It is one of the greatest benefits of a group health plan. The policyholder is not required to serve a waiting period. Moreover, pre-existing illnesses are also covered. So, there is no problem even if an employee’s elderly parents have been suffering from high BP or diabetes. The coverage will be offered from day 1. On the other hand, in a normal health insurance plan, a defined waiting period is to be served before making a claim for pre-existing ailments.

Employee health insurance

Cost Effective than a Normal health Plan

The premium for group insurance appears to be low against the benefits it offers. It is a group plan so the premium is split among the members of the policy.

 Pregnancy is Covered from Day 1

 Maternity could be an expensive affair, and without proper financial planning, one can’t afford the pre and post-natal expenses. In such cases, an employee can avail an additional financial support, that too without paying anything. A group medical cover includes maternity benefit and the female employee is covered from day 1. This is never possible with an individual cover, which always comes with a time limit /waiting period to cover maternity.

Do the Employees Need a Separate Health Insurance Even After being Covered by the Employer’s Group Health Insurance?

While we’ve discussed and considered the advantages of a group plan, we can’t deny the consequences of having one. Whatever be the reason, one should give first preference to personal health insurance policy. By including an employee under their group health insurance, the employer does him/her a great favour. However, one should not ignore the fact that the membership of this plan exists only till he/she serves the company. Once the employee resigns from there, the policy wouldn’t cover him/her anymore. A group health insurance is only an additional benefit which serves a restricted tenure. So, it is better if the employees don’t completely depend on the employer’s plan and buy their health plan before it is too late.

Written By: PolicyBazaar - Updated: 26 August 2021
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