Group health insurance is usually purchased for employees by employers. Group health insurance offers protection to employees along with their spouses, children, and dependent parents. In addition to the employees, buying group health insurance policies benefits the employers as well. In this blog, we will discuss why you must invest in group health insurance.
Benefits of Group Health Insurance for Employers
If you are an employer, you can buy a group health insurance policy for your employees, irrespective of the size of the organisation. Buying a health insurance policy for your employees come with several benefits. Here are the top three reasons why you must invest in group health insurance as an employer –
- Saving in Taxes: Group health insurance can help you save taxes under several sections of the Income Tax Act, of 1988. As per Indian Tax Regulations, you are exempted from certain taxes, if you have a group health plan. Thus, it is a win-win situation for you as you can save taxes and keep your employees happy.
- Retaining Talented Employees: Apart from CTC and company work culture, another important factor employees these days consider is the health insurance plan. This motivates them to stay longer and as a company, you can have an edge over your competitors.
- Value for Money: Group health insurance policy is cheaper as compared to individual health insurance plans. All the plans are customized which means the premium amount is divided among the insured employees.
Benefits of Group Health Insurance for Employees
Group health insurance policy makes the health insurance plan affordable for employees who are unable to get one for themselves and their families. Here are three top reasons how a group health insurance policy helps you as an employee –
- Easy on Wallet: The premium is paid by the employer on your behalf. Thus, it is easy on your pocket. Also, there is no waiting period to raise a claim.
- Maternity Coverage: Some insurance providers also offer maternity coverage with general health insurance, which is not available with other healthcare plans. Also, the major part of the expenses will be borne by the employer’s insurance company. In addition, the expenses related to the newborn baby are covered under the plan for 90 days after birth. Moreover, after 90 days, the baby will be covered as a dependent member under the plan.
- Coverage for Families: Group health insurance offers coverage for your family members. This is the best option as buying and managing family floater plans from different providers can be troublesome. Though the amount of the policy can vary depending on the insurance company and its terms and conditions.
- Easy Claim Process: The claim process for group health insurance is very easy and you do not have to go through a long claim settlement process. You can opt for a cashless claim in case of an emergency. All you need to do is inform the insurance provider and get into a network hospital. All the expenses will be settled between the insurance company and the hospital.
A group health insurance policy is an affordable and convenient plan as it covers several aspects for the employer and the employee. However, a group health insurance plan is only applicable till you are employed with the company. Thus, GHI gets terminated as soon as you leave the company or retire.
