The perks of buying group health insurance for employees 24^th September 2022

A group health insurance plan for employees is a group mediclaim plan purchased by a company for all its employees. The employees get basic coverage against common ailments and treatments. The employers usually deduct a certain sum from the CTC of the employees to pay for the premium of the policy. Also, they may decide to either share the premium burden or pay it fully themselves.

This trend of insuring employees' health and well-being has been followed for a long time. It establishes a bond of trust and responsibility the company takes for its employees. But how exactly is group health insurance beneficial? Here are the perks of buying a group health insurance policy for employees.

1. Cost efficient:
Since such policies are bought to cover many people, insurance companies provide them at a good discount. If the employer buys the same number of health insurance plans individually for his employees, it will cost him much more.

2. Motivation booster:
A group health insurance policy is a symbol of the care and concern of an employer for his employees. The employees feel valued that the employer is taking care of them. This acts as a motivation, and they work in a more dedicated and devoted manner towards the company. Also, such policies act as a retention tool. Employees think twice before changing jobs since they feel attached to the employer and the company.

3. Zero waiting period for pre-existing diseases:
A regular health insurance policy provides coverage for pre-existing diseases after 3- 4 years of buying the policy. However, there is no waiting period for the coverage of certain pre-existing diseases, such as diabetes, hypertension, etc., under a group health insurance plan. Employees get full coverage for any possible medical expenditure from day one.

4. Preferential treatment:
The buyers of group health insurance policies are big customers for the insurance companies. Hence, the insurance companies cannot afford to annoy them and have to deal with them as a priority. The employees get preferential treatment at the time of passing of claims.

5. Maternity coverage:
Regular health insurance plans usually do not provide maternity coverage and assistance. However, a group health insurance plan comes with automatic maternity coverage. The newborn child also gets automatic protection under the policy as a dependent after 90 days of birth.

6. Full family cover:
The group insurance plans provide health insurance benefits for the employee and his family. He can avail of the benefits for up to 5 dependents at no extra cost. Family-floater plans under regular policies charge much higher premiums for providing similar coverage.

7. Premium as a business expense:
An employer who pays the premium for a group health insurance policy for his employees can claim it as a business expense. It is treated as a benefit that he is providing to his employees. He can book the expenses in the profit and loss account like a general business expense and save on taxes.

8. Validity of the policy:
As per the IRDAI, an employee can migrate to an individual health insurance policy from a group health insurance plan while leaving or changing his job. He will have to complete some formalities with the insurance company for the same. Also, this depends upon the insurance company to continue or terminate the policy.

9. No medical checkups:
Another benefit of a group health insurance plan is that it does not require any medical checkups of the employees before buying the policy. The usual health insurance plans require a medical checkup before issuing the policy.

Buying a group health insurance for employees is often a win-win situation for the employer and the employees. There are many benefits and perks of such policies, which we have already gone through above. Moreover, such a policy is compulsory for employers and mandatory by law. Choose the best health insurance company in India that takes care of your most valuable assets- your employees.

Click HERE to buy the best health insurance.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.