What Is Group Health Insurance?
Published On Aug 17, 2021 11:00 AM By InsuranceDekho
Table of Contents
There are several types of health insurance covers in the insurance market to meet the demands of different customers. Some of the commonly bought health insurance policies are individual health insurance plans, family floater plans, maternity benefit covers, group health insurance plans, critical illness plans, and a lot more. Based on the requirements and other factors considered by the customer, a health insurance policy is chosen. An employer purchases a group health insurance cover to provide protection to its employees under a single health insurance policy.
A group health insurance cover includes a group of people under a single health insurance policy. Being the employer of a company or an organization, it becomes their responsibility to look after the needs and health of their employee so that they feel valued at work and give their maximum output as a human capital to the firm. Group health insurance plans come with a wide coverage which is shared among a group of people.
About Group Health Insurance Plan
A group health insurance plan is a wise way of insuring a group of people under a single health insurance cover. Generally it is bought by the employers of a company, foundation, or organization, to insure the employees and their family. It comes with an ample amount of sum assured to protect all the members insured under the plan. This health insurance is affordable and cheaper as it is purchased in bulk. No tax deduction benefits are provided to the policyholders who are taxpayers. No pre-medical health checkups are required before buying this cover. Group health insurance covers are valid and available for an individual only until they are a part of the company in whose name the insurance policy has been bought.
Features of A Group Health Insurance Cover
Let us look at some of the widely known features of a group health insurance cover for a group of people insured within the policy:
- These covers include the employees, their spouse, and children thus, offering a full family coverage at an affordable price.
- Some insurance covers come with pre-existing medical plans and with maternity benefits for the female employees.
- Cashless claim benefits are available for the policyholders at the network hospital of the insurance company.
- Some insurers provide fee reimbursements of specialists and other doctors for healthcare checkups.
Benefits of Group Health Insurance Plans
A group health insurance cover is bought by the employer for the employees of their company or organization and therefore, both the parties benefit from the purchase of this plan. Let us look at the benefits individually:
1. Benefits For Employers
The employers purchase this group health insurance cover and receive the following benefits:
- By providing health insurance policies to their employees, the employers gain their trust and the chances of a person leaving the company decreases.
- The employer purchases the group health insurance policy and is therefore eligible for tax deduction benefits.
- Such covers make the employees feel valued at the workplace and they give their maximum potential in giving the best outputs to the company.
- Employers can provide healthcare facilities to their employees at a much lesser price than the individual health insurance cover.
2. Benefits For Employees
The recipient of the benefits of the group health insurance covers are the employees of a company and following is the list of benefits that are available for them:
- This plan comes with no waiting period and can be availed at any given point of time.
- It covers the best medical facilities for its policyholders at a negotiable price.
- There is no limit on the coverage of diseases under the policy purchased.
- No pre medical healthcare checkups are required for the customers.
- The premium is lower when compared to the other types of health insurance plans.
You can get comprehensive coverage and best medical facilities under a group health insurance plan but if you have a medical history or are suffering from a pre-existing disease, then you must invest in a separate health insurance cover to get enough sum assured and coverage.
Also Read: Benefits of Group Health Insurance Plan From Employer
SBI Group Health Insurance Policy Online
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.