Everything about Group Health Insurance explained

by news
•
December 1, 2021

“Ap swasth hai to sab theek hai” heard it? Nothing new that we don’t know. Health is wealth we have heeded this over the years. A severe medical situation is no one’s choice of life but that very circumstance is unpredictable.

“Bimariyon se to Bhagwan hi bachaye” but when our lifestyle has changed in the ways we work, the food we eat and physical activity we pursue, illnesses are dreaded to happen. And to prevent unforeseen expenses tax your pocket due to severe illnesses we have health insurance policies. Keeping this in mind when employers buy a health insurance policy for a large group of their employees then it is called a Group Health Insurance Policy. Let us look at the policy in detail.

What is a Group Health Insurance Policy?

When a health policy is taken by a large corporate house that employees hundreds or thousands of employees then it is called a Group Health Insurance. The employees are the assets to the company hence their protection is a liability to the employer. A Group Health Plan is an offering for risk coverage to a specific group of people against health expenditures.
There is an option to customize the plans according to the need of the employees to a specific group.

Benefits of Group Health Insurance

You are engaged in your projects and hardly get time to look for a health insurance product. And to your surprise, the owners of the company announces to buy a Group Health Insurance Policy. Let us look at the benefits of the policy.

  • Health Cover as soon as you join: A Group Health Insurance Policy will cover employees from the date of joining. The entire family will also be covered along with it.
  • No Waiting Period: Largely, insurance companies offer coverage from day one that is from the start of the policy. Check the waiting period for specific diseases if any with the insurance company.
  • No Health Check-up: The employee will not have to get any medical check-ups before the start of the health insurance policy.
  • Maternity Cover: Group Health Insurance Policy covers your spouse for maternity expenses. It also covers the cost of infertility treatments.
  • Wider Range of diseases: Under a Group Health Insurance Plan, coverage against a wide range of diseases is offered without any limitations.
  • Lower Premium: A Group Health Insurance policy comes at a low premium rate because a larger group has a better negotiation power.

Disadvantages of Group Health Insurance

A few things in life comes with a cost and has some disadvantages. Let us what are the cons of a Group Health Insurance Policy.

  • Limitation of Cover: If you are covered under a Group Health Insurance Policy of a company then you will be protected only if you work with the same organization. That is the biggest disadvantage. Once you quit, you do not have a health policy.
  • No Cover for Dependent Parents: Some Group Health Plans do not cover your dependent parents for whom you will have to take separate health policy.

How Group Health Insurance is different from an Individual Health Insurance policy?

Do you want to be sure of which cover is better for you a Group Health or an Individual Health Policy? Let us look at the difference between the two:

Particulars Group Health Policy Individual Health policy
Contract It is a contract between the employer and the insurance company. It is a contract between the insured and the insurance company.
Premium Group Health Policy is available at a low premium. Individual Health Plans are expensive.
Employment Tenure Employment Tenure affects the policy like if you leave the company, you will not be covered. Employment Tenure does not affect insurance coverage.
Cancellation The insurance company has the power to cancel the policy. The insured has the power to cancel the policy.

Is group health insurance enough?
No, Group Health Insurance Policy is not enough. You should always buy an individual health insurance policy for yourself as:

  • It will allow you to cover your dependent parents.
  • Other than this, under the individual policy, you can maintain a good claim ratio due to which gradually you will earn a cumulative bonus also. The coverage limit or the Sum Insured is enhanced with the bonus earned which is beneficial for you.
  • Earn tax benefits.
  • It will keep you covered when you are unemployed for some time.

Note: Health Insurance does not prevent diseases from happening but it protects you from the financial expenses you may incur for the treatment. A Group Health Insurance Policy is good but not sufficient and one must have an individual health policy also.