Five Key Benefits of a Group Insurance Plan

Introduction

The debate between individual insurance and group mediclaim insurance has been everlasting. While the individual bears the former, the latter comes free of cost or at a subsidised cost from their employer. In the wake of the pandemic, more and more organisations are concerned about safeguarding the health of their employees, often opting for subscriptions to mediclaim policies sponsored by them.

It has resulted in more and more people getting to know the bright side of having group health insurance. So, today, more and more employers have begun extending support in insurance policies to the people most important for their organisational success.

This article discusses the top five benefits of a group insurance plan.

What is Group Health Insurance?

  • The idea of group health insurance is to provide coverage to a group of members. Predominantly, these groups are either part of the same organisation or a family.
  • These policies are cheaper than regular individual insurance, spreading the risk among multiple people.
  • Group health plans are bought by organisations and offered to employees as a perquisite. In most cases, these plans require 70% participation from the employees and can only be purchased in groups.
  • These plans can come in two types: basic or tired. While the former only provides standard coverage, the latter offers the ability to add riders, such as accident coverage or increasing policy value.
  • Some employers also offer the facility of adding family members, such as spouses, parents, and children, at additional cost.

Benefits of Group Mediclaim Insurance

1. It Saves Money

  • In most cases, employees do not have to bear premium outflows, as the organisation undertakes this responsibility. Even if they have to, the rates are subsidised.
  • When you compare the same to individual plans offering the same coverage, the cost borne by the employee is merely a fraction of the total outflow otherwise.
  • Therefore, having a group mediclaim insurance helps save money while offering the same coverage.

2. It Increases the Happiness Quotient

  • One of the biggest gripes among unhappy employees is that their organisations are insensitive toward their well-being. Employers must understand that individuals will perform to their potential only when they feel valued.
  • So, when they are offered a health plan, employees start feeling that the organisation values them and wants to see them happy and content. This propels them to work with greater efficiency and help the organisation achieve its goals with greater aplomb.
  • While insurance may not solve all the gripes your employees have with you, it can be an excellent way to start and inform them that they matter.
  • Insurance is one of the most vital tools to help human beings feel safe, and when it comes from the person/organisation they work for, it contributes to improving the happiness quotient.

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3. No Waiting Period

  • Individual health plans often come with 45 days or higher.
  • This means, that the individual either needs to subscribe to a new policy when an existing mediclaim policy is already active or is left without cover during such periods.
  • One of the most significant advantages of group health insurance plans is that they provide coverage from day one, and beneficiaries need not wait for policy activation, including chronic ailments.

4. Cashless Treatment

  • The rising costs of hospitalisation require no introduction in 2022.
  • Thankfully, group health plans have direct affiliations with a list of top hospitals in your area.
  • This enables employees to avail of cashless treatments where the insurer pays the bill, instead of them bearing the costs and waiting for claims.
  • It helps the workforce skip the queue of lengthy paperwork and other processes involved in making a claim.

5. Covers Pre-existing Ailments

  • Individual health plans have often been criticised because of their inflexibility regarding pre-existing ailments.
  • The beneficiaries are repeatedly denied cover for issues that persist when they look to avail of a mediclaim policy.
  • Such is not the case with group health plans. These provide coverage for pre-existing ailments and other standard issues that employees can suffer from with equal ease.

Wrapping Up

In the modern landscape of job life becoming increasingly stressful and hectic, the benefits of having group mediclaim insurance are priceless. It enables employees to focus on their work, irrespective of whether they are in their office or on a workation, while the organisation takes care of their policy requirements.

In addition, it provides peace of mind to both the employees and employers. The former is relieved of the feeling that the people working under them can suffer because of lack of coverage, while the latter can rest assured, protected under the insurance plan. With the benefits of adding riders and family members, group health plans have become more lucrative and are seeing higher adoption globally.

Jessie Jacobs
Jessie Jacobs