Importance of Group Health Insurance Policy

There is a growing need for health insurance plans all over the country due to the spread of the coronavirus pandemic. People have come to realise that it is important to have some financial backup for medical emergencies as health insurance policies not only provide monetary support but also ensure quality treatment of the policyholders at the private hospitals. There are different types of health insurance plans like individual plans, family floater plans, group health insurance covers, personal accident covers, maternity benefit covers, etc. Employers of an organization or a company buy group health insurance covers to provide protection to their employees.

Group health insurance plans help the employers to protect all their employees under a single plan. It makes the employees feel respected and valued at the workplace and there is a growth in human capital which helps the company to grow. Group health insurance plans not only protects the employees but also covers their family members which includes their spouse and children. No tax reduction benefits are provided to the policyholders of group health insurance and it is issued in the name of the company, organization, or the employer who purchases the policy.

About Group Health Insurance Plan

A group health insurance plan is a type of health insurance policy which covers a group of people working under the same organization, company, or employer. Such plans are purchased by the employer to protect their employees from high costs of medical treatments and help them to avoid draining their financial savings. This plan is popularly also known as a corporate health insurance plan. It includes a wide range of benefits for the employees as it covers the expenses like room rents, ambulance charges, hospitalization costs, healthcare checkup costs, etc. Group health insurance plans cover the dependent family members of the employees which include the employee’s spouse, children, and dependent parents. Let us look at some of the common features of group health insurance policies:

Must Read: Benefits of Group Health Insurance Plan From Employer

• The contract of the group health insurance plan is handled by the employer.
• The policy is based on the employment and it can be availed by an individual as long as he/she is an employee in the organization.
• This policy does not get expensive with the increase in age of the applicant.
• The coverage of these plans depends on the financial strength of the employer or the organization.

Advantages of Having A Group Health Insurance Policy

Following are some of the key benefits of having a group health insurance policy which can be availed by the policyholders at the time of claim settlement process:

• There is no waiting period under the group health insurance cover, that is you can claim the policy anytime.
• No pre-medical health checkup is required for employees of any age before getting the health insurance policy.
• There is no waiting period for pre-existing diseases and you can get coverage for them from day one after the purchase of the policy.
• The coverage of group insurance is wide and extensive, as it covers all the diseases irrespective of the type.
• Maternity cover benefits are provided to the female employees of the organization that cover for the newborn baby along with the mother.
• When compared to an individual health insurance policy, the premium rate of a group health insurance is lower, as the coverage and sum assured is distributed among a large group of people equally.

Key Reasons To Have A Group Health Insurance Policy

Let us look at some of the key points to understand the importance of group health insurance policies:

• Group health insurance covers provide financial protection to the employee’s dependents like their spouse, children, and dependent parents.
• This plan is financially suitable and attractive for the employees as it comes with no waiting period, no pre-health checkups, etc.
• It makes the employee feel values at work which provides them the motivation to put in the efforts for the company which looks after them and their financial needs.

Conclusion

You can get a group health insurance company and enjoy its benefits, but you must get a separate health insurance cover for yourself or your loved ones if there is a case of medical history or pre-existing diseases.

Also Read: What Is Group Health Insurance?

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.