As we know, health insurance policies have different categories, each designed to suit a certain set of requirements. When it comes to offering health insurance to a group of people who are not related to each other personally, in such cases a group health insurance plan is the best option. Most of the organizations offer health insurance benefits to their employees. The organizations bear the cost of the premium. So, rather than purchasing individual policies from the insurance company, group policy is purchased, which can accommodate a large group of employees.

So, what are the benefits offered by the group health insurance policies? Well, it is advantageous for organizations as the amount of premium doled out for an individual health insurance policy would much higher in comparison to that of a group health insurance plan. But, is it really beneficial for the employees? Is the cover amount, in this case, is sufficient enough? Let’s know more.

More about the different aspects of group health insurance

Before we get into the beneficial aspects of this kind of health policy, it is important to mention its two different types. Corporate health plans are available in two types, and they are:

• Contributory plans: In this kind of health insurance, the employee also has to bear a small fraction of the premium amount. The rest of the amount is paid by his employer.
• Non-contributory plans: As the name suggests, the premium amount in this kind of policy is paid entirely by the employer.

So, how the premium amount is calculated in a group policy? In this case, the insurance company calculates the risk factor related to each employee enlisted in the policy. Based on the average risk factor assessed, the insurance company decides the premium amount. As a matter of fact, it is mandatory for companies that have more than 50 employees to provide health insurance policy to their each and every employee.

Is a group health insurance plan enough to cover your healthcare expenses? Well, it depends on a few factors. If you are someone who is in his/her 20s or 30s, you might not avail medical and healthcare services quite often. In such a case, a cover amount of just INR 2 lac can be more than enough for you. But, if you are in your 40s or 50s, you are more vulnerable to serious diseases or critical illnesses. In that case, you should also buy an individual health insurance policy for your own benefit.

Another thing that should be kept in mind is the number of dependents you have. For a small family of three or four members, a group health policy can be a decent option. Some organizations allow their employees to add one dependent to their health insurance policy. The sum assured offered is also a little higher in such cases. On the other hand, if you are the sole breadwinner of your family, and there are like five or more members, then you should not rely on the cover amount of your group health policy. It will not be sufficient to cover the healthcare expenses of your family.

Why group health insurance policies still make sense?

• It can be seen as an additional cover for your healthcare expenses. By simply being an employee of the organization, you become eligible to get a cover from the insurer. So, the entire system is quite a hassle-free one.
• In the case of group health insurance policies, the employees are not required to go through the long list of medical tests. Everything is taken care of by the employer.
• The best group health insurance plans also cover pre-existing diseases. This is perhaps one of the main advantages of having a group policy. When you buy an individual policy, chances are high that it won’t cover your pre-existing illness.
• Maternity benefit is another reason that makes group insurance health plans so effective. Female employees can get the medical expenses reimbursed which they had to pay for delivery.
• Some organizations provide their employees with the advantage of adding an immediate family member to the policy. This kind of family floater plan can prove to be useful at the time of medical emergency.
• In case you do not know, dental treatment is also covered by some of the group health insurance companies.

Besides them, there are many more advantages to having a group health insurance plan. For organizations, this kind of health policy has become an effective way of employee retention. When a company offers health insurance coverage to its employees, it helps create a positive and employee-centric image of the company. In the long run, these things prove to be quite useful from the perspective of branding. Before choosing a group health insurance policy, one must check out the list of inclusions and exclusions.