Group Health Insurance
A health insurance plan aims to provide convenience to the policyholder during hospitalization in form of reimbursements or direct settlement with the medical centre. When this convenience is made available to a group sharing a common attribute, it is termed as group health insurance. It includes hospitalization charges like room rent, medical check-up fee, nursing expenses, cost of medicines and other consumables and diagnostic expenses, pre and post hospitalization cost, domiciliary hospitalization and day care treatments.
Reasons to Avail Corporate Health Insurance
• It provides higher coverage at lower premium rate
• Additional benefits like maternity coverage and critical illness coverage without waiting period, can be availed
Group health insurance plans are available as corporate insurance plans. They are the most-sought after insurance plans due to the host of benefits they provide to the employer and employees. Any insurance company desires to have a larger group or a higher number of people in a group to provide insurance as it enables to accumulate a larger pool of resources to provide insurance and its cost of providing insurance also reduces. Owing to this, the insurance company is able to provide higher amount of discount to groups availing group insurance schemes.
You can get the benefits of group health insurance plan if you are an employee of a company that provides health insurance to its employees or if you are a member of a society, corporation or any kind of group that collectively has the provision of having group health insurance policy.
Since a single policy is issued to the group, the coverage level for each member of the group remains same along with the premium amount. The benefits available to one are available to all. Moreover, the group gets additional benefits and facilities that cannot be availed under an individual health insurance plan. For instance, waiting period is applicable to avail coverage for critical illness and/or pre-existing diseases. However insurance companies do not apply waiting period condition while providing coverage to a group. Besides, when it comes to a group plan, insurance companies tend to become lenient in processing the claims.
Benefits of Group Health Insurance
• Health coverage is customizable i.e. it can be planned and provided as per the common needs of the group
• Higher coverage is available at lesser premium amount
• Additional benefits like maternity coverage and dental coverage is available at no cost or lesser cost
• Cost of medical check-ups and follow-ups, ambulance, dental treatments and for many more services is reimbursed
• Comparatively higher discounts are applicable
• Insurance company is often lenient with group insurance plan holders
• Tax deductions can be availed for paying the premium as it is applicable for separate health insurance plans
• Employers are able to reduce their turnover rate
• Employees are able to get additional health coverage if they already have a separate health insurance plan. In this way they can plan and choose lower coverage under their separate health plan and pay lesser premium, while rest of the coverage can be availed under employer-provided health plan.
• Employee can continue with the plan even after leaving the group (conditions apply)