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What are the benefits of Group Health Insurance policy from the employer?

The employees are the pillars of the success of an organization. To uplift their profits and market reputation, companies are trying to retain their employees by paying them handsome salaries. But these days, employees are also receiving compensation from their organizations. Group health insurance is one such example that has gained huge momentum due to this lethal COVID-19 pandemic.

What is a group health insurance policy?

Group health insurance policy is often known as corporate health insurance plans that cover all healthcare expenses of employees and their families in an organization. Group mediclaim policy plans are not only advantageous for employees but even for the employer. Group medical insurance policies make your employees more productive and healthier. When a family member of an employee is hospitalized, this gives enough stress to the employee. Employer health insurance takes care of all the cost of medical treatments, and thus, this group mediclaim policy for employees helps employees get rid of financial burdens. To improve the mental health safety of your employees, group health insurance plans play a pivotal role.

Employers offer this group mediclaim policy plans to strengthen trust and loyalty among employees. In this type of employee insurance policy, the premium amounts are paid by the employer.

6 Top benefits of Health Insurance for Corporate Employees

Let’s take a look at some of the advantages of health insurance for corporate employees.

  1. Free health insurance coverage
  2. Quicker turn-around time
  3. No waiting period
  4. Easy access to family health insurance
  5. No medical screening is required
  6. Employees feel honored

 

1. Free health insurance coverage

Since the employer buys a group health insurance base policy, hence the employees don’t need to pay anything for the base policy coverage. However, if an employee needs more coverage from corporate health insurance plans, then he/she can opt for a top-up plan by paying an additional cost.

2. Quicker turn-around time

One of the prime benefits of a group health insurance policy is that it offers quicker claim settlements for employees. Companies prefer insurance companies that offer priority services to their esteemed employees.

3. No waiting period

When it comes to pre-existing diseases, specific diseases, maternity benefits, etc., most insurance companies usually come with a waiting period clause. According to this clause, an insured policyholder can’t initiate a claim for these conditions for a few years. But this restriction is alleviated with employee group health insurance policy plans. Group health insurance policy offers coverage from the first day of the policy for employees, their spouses, kids, or parents.

4. Easy access to family health insurance

Most Indian family members want to purchase a family floater health insurance plan that covers themselves, their spouses, children, and even their parents. But these plans are quite expensive, and many can’t afford them. On the other hand, a group health insurance plan covers an employee’s immediate family members (up to 5 members) without paying any additional premium. Moreover, these group health insurance plans offer easy access to policy for parents. Because of your parent’s age and medical conditions, you may not utilize a health insurance policy completely.

5. No medical screening is required

Medical screening depicts the current health status of a policy buyer who wants to purchase a health insurance plan. Depending on the test results of the screening, your premium may increase for health insurance plans.

But an employee doesn’t need to perform any medical test that can affect their premium amounts for group health policies. The coverage will be similar for all employees of an organization, irrespective of their health conditions.

The benefits and coverage are the same for most group health Insurance plans. But, some companies are offering a blend of wellness benefits and insurance to their employees. These benefits can be rewarding employees for staying fit, offering telephonic consultation with doctors for their ailments, preventive healthcare, and much more. Companies are offering group health insurance plans to the employees to strengthen their physical and mental wellness.

6. Employees feel honored

With group health insurance cover, the employees feel privileged that their organizations value and respect them. In return, they also work harder and try to deliver the best results.

Which company offers group health insurance plans to their employees?

These days, every private and government organization offers group mediclaim policy plans to their employees. However, these schemes may differ from company to company. Government sectors embrace their employees with schemes like CGHS, while Private sectors offer plans or health services like ESI.

Should you purchase personal health insurance even if you have group health insurance?

Though group health insurance policy has many advantages and features, you should still purchase a personal health insurance plan. Some of the reasons for this may include-

  • There are restrictions on some coverage features.
  • If you leave your present organization, then your group health insurance policy will not help you anymore.
  • Not beneficial for retired employees.
  • Every employee needs to pay the same premium amount irrespective of if he/she is fit or not.
  • The high claim amount may enhance the costs of renewal premium.

 

Benefits of Group health insurance plans for employers

Now, let’s take a look at how group health insurance plans are beneficial for employers.

  • Good motivation for employees: Since the company pays off all healthcare expenses, hence employers can motivate their employees completely.
  • Higher retention of employees: Now every company is trying its best to retain their good and eligible employees. A group health insurance policy plays an imperative role in retaining employees for a longer period. Since employees are getting assurance from their organizations regarding their healthcare expenses, they don’t want to leave their companies easily.
  • Huge tax benefits: When employers purchase group health insurance for employees, they can avail of tax benefits as the policy will help reduce the tax liability.
  •  Affordable premiums: A company used to purchase group health insurance plans for a large group of people. Thus, the premium amount is low as compared to normal health insurance policy plans.

Now, you have adequate knowledge about a group health insurance policy and its benefits for both employers and employees. But remember one thing, once you leave your current organization (irrespective of the reason), the benefits of group health insurance plans end that particular day.

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