Top 10 Benefits of Group Health Insurance for Employees | Biresh Giri | Head of Product Development & CRO | ACKO General Insurance
Top 10 Benefits of Group Health Insurance for Employees
When employers are recruiting a candidate, they expect nothing but the best. Similarly, the employees also prefer an employer that will take good care of them. The power to pick and choose – to an extent – lies with both the employer and the employee. Therefore, the employer is looking to offer some perquisites along with the salary and the employee is looking forward to receiving such benefits as a part of the package. The Group Health Insurance Plan is one such
benefit.
What is a Group Health Insurance Plan for Employees?
Employers offer a Group Health Plan to their employees by paying the insurance premium for them. Such a policy is also known as Employee Health Insurance or Group Mediclaim for Employees. Here, the employees are covered under a generic policy with the same coverage. However, the employees will not be covered by the group policy when they are no longer a part of the company.
Top Benefits of the Group Health Policy for Employees
A Group Health Policy offered by one insurer can vary from another in terms of the coverage offered and the premium charged. As a result, the benefits associated with the policy depend upon the terms and conditions of the policy. The following list of benefits pertains to a generic Group Health Insurance Policy for employees.
1) Available for Free
In most cases, the employees do not have to contribute towards the payment made to purchase the Group Health Insurance policy. This means the employees can receive the benefits of an insurance cover without paying money – they get it free of cost.
2) Financial Security
You should at least be covered under one health insurance policy – it can be an Individual Plan, a Family Floater Plan, or a Group Plan. An Employee Health Insurance policy offered by the employer ensures basic insurance coverage so that there is some sort of financial security in case of events like emergency hospitalisation.
3) Cover for Family
Some employers choose a policy that covers their employees as well as the employees’ family members. Usually, the employee has the option to select the family members that can be included in the policy. For example, the employee, spouse, and employee’s parents can be covered under one plan.
4) Relaxed Terms
A Group Health Policy has lenient terms and conditions as compared to an Individual Health Policy. For example, in most cases there is no need to undergo a health check-up to be a part of a Group Plan; there is no Waiting Period and the policy also offers a Maternity Cover.
5) Policy Conversion
Some insurers allow Employee-centric Health Insurance policies to be converted into Individual Health Plans. For example, the Group Plan can be converted to an Individual Plan post – retirement.
6) Manage Insurance Portfolio
With a basic health cover in place in the form of Employee Health Insurance, you can plan your and your family’s insurance requirements accordingly. For example, if the group policy does not cover your family members, you can purchase a Family Floater Plan.
7) Manage Finances
Once you have an idea about your insurance portfolio, you will be in a better position to plan the amount of money you want to allocate as savings and the amount you want to invest.
8) Avoiding Complexities
Analysing different plans, going through the inclusions and exclusions of the policy, and purchasing a health insurance policy can be overwhelming for some people. Those who consider health insurance to be complex can benefit from a Group Health Plan as the policy is chosen for them by their employer.
9) Cashless Claim Settlement
Most of the insurers that offer a Group Health Plan manage claims in a cashless manner, where the patient does not need to settle the hospital bill and then apply for reimbursement. Insurers have tie-ups with hospitals and the claims are settled between them conveniently.
10) Peace of Mind
Overall, being covered under a health insurance policy offers peace of mind. It is assuring to know that there is some plan to fall back on in case a financial emergency arises because of a health scare.
Health Insurance is a Must
If your employer has offered you a Group Health Policy, then take an active interest in understanding its coverage. While switching jobs, ask your potential employer if they offer such benefits. Read the fine print to understand the cover in detail and get your doubts resolved by getting in touch with the insurer.