Group Health Insurance is a health insurance policy bought by companies or employers to cover their employees against healthcare expenses. This practice is prevalent in many private and government organizations (CGHS and ESI). Often, the Group Health Insurance cost or the premium is included in the CTC for employees working in the private sectors.
Advantages of Group Health Insurance for Employees
A Group Health Insurance has many benefits or advantages for employees as well as the employers. It not only provides cover for the insured, but he/she can also bring his family members under the protection of the Group Health Insurance policy. Additionally, the employees can enjoy a spectrum of advantages with a Group Health Insurance policy and here is a list –
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Healthcare benefits at a nominal cost
The premium for a Group Health Insurance policy is low compared to personal health insurance policies.
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No waiting period
With Group Health Insurance, employees are covered for specified declared and accepted pre-existing diseases from day one.
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Coverage for dear ones
Although Group Health Insurance policies come with caps and limitations, through customization employees can include their family members in their Group Health Insurance policy as per the policy terms and conditions.
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Hassle-free insurance claim
Since the company acts as the point of contact to the insurance provider, it becomes effortless to put forward any claims regarding Group Health Insurance.
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No pre-medical tests
Similar to the no-waiting period benefit, every member of the Group Health Insurance enjoys the same benefits without any need for pre-medical tests.
Advantages of Group Health Insurance for Employers
Not only employees but Group Health Insurance also offers a host of benefits to employers. Here is a list of some advantages of Group Health Insurance plans for employers–
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Employee retention
Apart from the salaries, company perks and benefits influence the employees to a great extent. With benefits like Group Health Insurance, employees feel more valued in the organisation.
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Tax benefits
Paying the premium on behalf of their employees can be treated as ‘profits in lieu of salary’ and fetch tax benefits for the employer.
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Improves company goodwill
A company that provides Group Health Insurance for employees is seen as an organization that cares for its stakeholders or workforce. Having such goodwill plays a pivotal role during the hiring process.
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Increases productivity
Providing employees with Group Health Insurance helps them secure their financial life. It strengthens employee’s motivation towards performance to reach organizational goals.
Add-ons/ Riders
You will get the option to add a number of riders to our Group Health Insurance Plans to enhance their coverages. We offer a gamut of riders, including riders for Maternity Expenses, External Medical Aid, New-born Care, Critical Illness Cover, Ambulance Cover, and Domiciliary Expenses, among others.
To Conclude
After a comprehensive discussion, we can assert that Group Health Insurance can be a great tool to provide health security to employees. Moreover, it can also be leveraged to claim tax benefits for the employers and improve company’s goodwill. However, before finalising a Group Health Insurance policy for your employees, it’s better to conduct a thorough research and compare various offerings available in market.