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Benefits of having a group health insurance from your employer

A group health insurance base policy is purchased by the employer and is free of cost to the employee. (Photo: iStock)

Gone are the days when employees would only appreciate the figure on their paycheck. Today, they look for meaningful compensations too. One such example is group health insurance, which has gained precedence due to the pandemic. Considering this, employees expect a hands-on, comprehensive policy to cover their medical needs.

“Group health insurance is not just beneficial for employees but even for the employer. Healthier employees make a more productive workforce. Especially, in the event when a family member is hospitalized, employees are under a lot of stress. Health insurance at least takes care of financial stress the employee might be in owing to the costs of medical treatments. It is a vital step towards the mental health safety of your employees,” Biresh Giri, EVP – Actuary & Underwriting, ACKO Insurance said.

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Let’s take a closer look at several advantages of having group health insurance from your employer.

What is group health insurance

Also known as group mediclaim policy or corporate health insurance, a group health insurance policy offers coverage to a group of people. In organizations, employers offer this policy to build trust and loyalty within employees. In this case, the premium amount is borne by the employer.

Some of the advantages of group health insurance which can benefit employees are:

Free health insurance coverage

A group health insurance base policy is purchased by the employer and is free of cost to the employee. If an employee feels he/she needs more coverage (in a few cases including coverage for the parents) then they can opt for it at an additional cost.

Faster turnaround time

One of the major benefits of a group health coverage is an instant query redressal or faster claim settlement for employees. Companies prefer insurers that offer priority services to their employees.

Easy access to family health insurance

Giri said that if an average family-person wants to buy a family floater health insurance plan that covers themselves, their spouse, two children, and one set of parents, this can be an expensive affair. “But a group health plan covers immediate family members (usually up to 5 members) without additional premium payment. Additionally, group health insurance offers easy access to policy for parents, which is otherwise difficult due to their age and medical conditions,” he said.

No waiting period

Usually, insurance companies have a waiting period clause when it comes to pre-existing diseases, maternity benefits, etc. As per the clause, an insured person cannot raise a claim for these conditions for a few years.

This limitation is mitigated with group health policies. Here the coverage begins from the first day of the policy, be it for employees, their spouse, kids, or parents.

No medical screening required

Medical screening determines the current health status of a person who wants to buy a health insurance plan. The premium of a policy can increase depending upon the test results of the initial screening.

However, a group health insurance does not require the employees to take any medical tests that can affect the premium of the policy. The coverage is similar for all the employees irrespective of their health status.

“Mostly, all the benefits are common across the majority of group health Insurance plans. However, some InsurTech companies are providing a blend of wellness benefits and insurance. This includes rewarding employees for staying healthy, providing teleconsultation with doctors, preventive healthcare, and much more. The future of Group Health Insurance is to be a connected ecosystem for all health & wellness offerings,” said Giri.

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