How Does A Group Health Insurance Plan Work?
Updated On Sep 15, 2021
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A health insurance policy is important for all as it provides monetary compensation to an individual in case of a medical emergency. It offers financial aid to the customers and relieves them of the stress while receiving treatment during hospitalization. There are several types of health insurance plans in the market that have been curated to meet the demands of different groups of customers seeking effective health insurance plans. Some of the widely bought health insurance policies are individual health insurance plans, family floater plans, group health insurance covers, maternity benefit plans, etc. You can analyze your requirements and then accordingly invest in a suitable health insurance cover.
Group health insurance plans are widely known as corporate health insurance plans as these plans are bought by the employer of a company or an organization for their employees. It protects the employees and their family members under a single plan. Group health insurance plans are significant for companies who want to hold their employees and make them feel valued at the workplace. Such plans are cheaper than individual health insurance policies and it requires no pre medical healthcare check up before rolling out the plan to the policyholders.
About Group Health Insurance Plan
A group health insurance plan is bought by the employers, companies, or organizations to provide financial aid to their employees at the time of medical emergencies. It offers compensation for medical expenses incurred during hospitalization due to the treatment of a disease. These plans cover a large number of people under a single plan and it is bought in the name of the company or the employer. Both employer and the employees are the beneficiaries to this plan, but tax deduction benefits are offered only to the employer of the company. It requires no pre medical healthcare checkups of the policyholders and there is no waiting period under such plans for the customers. These plans are valid and available for the employees as long as they are a part of the company.
Must Read: Importance of Group Health Insurance Policy
Key Features of A Group Health Insurance Cover
Following are some of the key features and benefits of a group health insurance plan:
- Group health insurance plans cover the employees along with their spouse, children, and dependent parents at an affordable premium rate.
- Some group health insurance plans offer pre-existing medical coverage and maternity benefits for the female employees of the company.
- Cashless claims can be made by the policyholders at the network hospitals of the insurance company.
- Some group health insurers offer fee reimbursements of specialists and other doctors for healthcare checkups.
How Does A Group Health Insurance Plan Work?
A group health insurance plan works like any other health insurance plan but the coverage and sum assured under this plan is distributed among the beneficiaries of the plan. Like family floater plans, the sum assured is equally reserved for the employees and their family members insured under the group health insurance plan of a company. It looks after the medical expenses like hospitalization costs, medical treatment costs, etc. of the employees and their spouse, children, and dependent parents.
The family members of the employees can be insured under a single plan based on the type of plan chosen by the employer. Group health insurance plans provide coverage to an employee of a company as long as he/she is a part of the company or organization. The sum assured under group health insurance plans differ from one company to the other and it is also influenced by the salary of the employee. To claim your policy, you can directly approach your company or organization instead of going to the insurer.
Conclusion
You can avail the benefits and features of a group health insurance policy whenever necessary as many of them do not come with a waiting period. You must carefully go through the policy papers to understand the inclusions and exclusions of your plan as it can avoid any inconvenience at the time of claim settlement process.
Also Read: Individual Health Insurance Plans Vs Group Health Insurance Plans
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
