Why Group Medical Policies are Essential for Small Business Owners?

The two primary wheels of any business are profits and goodwill. These two wheels are pushed forward by the employees of the organisation. Therefore, being a business owner, you must treat the employees well to make the running of the business smooth. There are various ways to take care of employees' engagement and employees well-being, and one of them is group medical insurance. This blog will dive deep into health insurance for employees and its significance for the business.

Group Medical Policy

A group medical insurance is a type of insurance plan which covers a group of people who work under the same organisation. It is a benefit offered by the employer to its employees, as the premium for the plan is borne by the employer. The coverage of health insurance can be extended to the family members of the employees, which depends on the plan the employer opts for.

Reasons to Cover Employees Under the Health Plan

As the cost of the plan is borne by you as an employer, you must be aware of the benefits the policy can give to your business in the long run. Let’s look at various reasons for buying group health insurance:

• Boost Employee Retention Rate: Nowadays, employees do not just run for higher salaries but also for additional benefits. They value a sense of security more than money. The group health plan provides satisfaction among employees and builds trust for the employer.
• Higher Employee Motivation: Healthy and happy workforce leads to successful companies. When employees feel safe, they automatically work towards the benefit of the organisation with a motivated mindset.
• Financial Security: Post-COVID-19, people are more concerned about health, and they choose companies which provide them financial security at the time they need it the most.
• Enhance Mental Well-being: Most of the group health insurance plans also include employee well-being programmes and anti-depression sessions. This helps employees to be stress-free, which in turn improves their efficiency at the workplace.

Eligibility to Opt for Group Medical Policy

If you own a small business, you must be wondering about the eligibility criteria for taking group insurance. But now, you need not worry about eligibility as many insurance companies offer plans for just one or more employees. You can choose a plan according to the size of the business and the budget of the company. You, as a small business owner, must plan for your business by providing additional benefits to the employees to grow in future.

Tax Benefit for the Employer

Under the Income Tax Act, there is a term called “Profit in lieu of salary”, which is the amount paid by the employer towards employees' benefits. As the premium for the group insurance is paid by the employer, you can avail of tax benefits. The entire cost of the insurance can be claimed as a business expense in the company’s accounts.

In case the partial amount of the premium is borne by the employees, they are eligible to avail of the tax benefit. They can get a tax deduction on the amount of premium paid under section 80D of the Income Tax Act, which should not exceed ₹1 Lakh in a financial year.

Factors to Consider Before Buying Group Health Plan

As an employer, you bear the cost of the health insurance. Therefore, you must consider the following important points before making a buying decision:

• Network Hospital: Network hospital is the list of hospitals where employees can get a cashless hospitalisation facility. You must check if all major hospitals are covered under the plan.
• Coverage: An idle plan should cover maximum diseases and provide coverage for additional medical expenses. It is important to look for plans which provide maximum benefits.
  
• Quality of Service: While buying a plan, you must go through the reviews for the insurer. The claim settlement process should be smooth and effective.
• Affordability: The budget is the key determinant of the policy you plan to buy. You should consider a policy which is affordable and provide significant benefits as compared to the cost borne.
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Bottom Line

Businesses grow when they care for their employees and contribute to society. You, as an employer, must value the goodwill your business attains by serving the stakeholders. You should select a good insurer like Niva Bupa to provide benefits as it affects the long-term image of the business. Niva Bupa has served many companies and individuals over the years and delivered high-quality results.

So, what are you waiting for? Come on our website to check plans and benefits today!