What Business Owners Need to Know About benefits of Group Medical Insurance?

As business owners, there are several things you should know about providing group medical insurance to employees. This includes not just the covers but also the benefits of group medical insurance. This is because a plan to implement a group medical insurance policy affects not just the employees but also the employer and the business as a whole. 

By providing a reliable insurance policy, an employer can secure employees' health and financial well-being while creating a safe and secure work environment that boosts morale and productivity. 

This article will explore all you need to know about opting for and providing group health insurance policies to employees.

What is group medical insurance?

Group medical insurance is a type of health insurance specially designed to provide health insurance coverage to many individuals in a single policy. By opting for this policy, all members of an association or employees can be provided health insurance coverage in a single unified and standardised policy. Unlike individual plans, group insurance plans offer convenient, cost-effective and customisable methods for associations and organisations to provide health insurance to their members.

How does a group medical insurance policy work?

Employee group insurance policies work by dispersing individual risk over many individuals and providing standardised coverage with set coverage, thus reducing premium costs and making the purchase and renewal process much more convenient. While insurers offer group health insurance as a tailor-made policy, as an employer, considering the needs of every individual employee and providing tailor-made insurance solutions to each member might be expensive and not sustainable. 

This is where, by providing a standardised policy with a certain level of coverage, employers can ensure adequate financial protection for employees from medical expenses while enabling employees who wish to avail themselves of more comprehensive coverage to acquire it through top-up plans.

What are the benefits of group medical insurance?

In addition to the convenience of offering a standardised policy, the cost-effectiveness of having a significantly lower premium cost and the customisability of building a tailor-made plan based on the organisation’s needs, there are several advantages of opting for a group insurance plan. 

Here are a few key benefits of group medical insurance to consider:

• Reduced financial liability and out-of-pocket expenses for the employee.
• Coverage for maternity and newborn expenses. 
• Coverage for dependents of the employee. 
• Preventive care and diagnostics.
• Boosted morale and productivity in the organisation.
• Attraction of top talent and retention of valuable employees.
• Tax savings are proportional to the contribution. 

For example, if an employer wholly sponsors the insurance plan, they will be eligible for the entire tax savings. However, if an employee also contributed to the premium, they will be eligible for tax savings proportionately with the amount they contributed.

How to choose the right group medical insurance policy for employees?

An employer might have to consider several factors before choosing a group mediclaim insurance policy for employees. Choosing the right corporate health insurance policy involves evaluating the number of employees, their needs, industry mandates, the organisation's finances, specific coverage options, the benefits of opting for one policy over the other, the insurer's reliability, the hospital network, and clauses like co-pay, waiting period, and deductibles. 

Considering these essential factors, you can choose the right employee insurance policy. However, if you are still unable to figure out which is the best option, consult with a reliable insurance provider for a customised solution based on your group’s needs.

How to get group medical insurance for family of employees?

Once you have determined that you wish to buy a group medical insurance for employees and their families, it is possible to choose and buy an insurance policy in one of three ways. The first and the most convenient way is to approach a reliable insurance provider like Niva Bupa Health Insurance and build a tailor-made policy for your and your organisation’s needs. If you are unsure which insurance provider you would like to approach, you can consult with a reliable insurance broker and get some insight into the insurance purchase process. Otherwise, the third way is to approach a bank and partner with them to purchase a group insurance plan through the bancassurance method.

Conclusion

To conclude, as a business owner, providing financial protection to employees from covered medical risks is a huge benefit. This, in turn, boosts morale and productivity in the organisation and reduces employee turnover, thus enhancing the company's efficiency and growth. While providing a group medical insurance policy for employees might feel like an unnecessary investment or cost, it provides a lot more for both the employees covered under it and the employers providing it. 

So keep the benefits in mind and provide the right insurance policy for employees by considering the above factors.