Group insurance cover is a global health insurance policy, mainly taken out by companies for their employees. These policies provide health insurance coverage to employees as well as their spouses, children and sometimes parents.
According to experts, for an employer, a group health insurance policy is relatively easier to obtain since he buys it in bulk for his employees. “Group health insurance plans for large numbers of people also end up covering multiple things simultaneously. It is beneficial for employers to cover their employees as it creates a protective environment. Employees will have one less thing to worry about and start connecting well with their workplace/employers,” said Sanchit Malik, co-founder and CEO of Pazcare, an insuretech company.
There are key differences between retail health coverages and group health coverages that individuals should be aware of.
First, in the case of retail health coverage, the insurance contract is signed with the policyholder, while in the case of group health coverage, the employer owns the insurance contract with the insurer. The employer then issues certificates to the company’s employees.
Second, the insured can revoke retail health coverage. On the other hand, the employer can terminate the group health policy for its employees.
Third, purchasing a retail health insurance policy comes with a waiting period for pre-existing conditions, while group health insurance coverages do not have this restriction.
Fourth, all retail health policies become more expensive with age. Whereas in the case of group coverage, the policies do not become more expensive with the age of the employee.
Fifth, you must renew your retail health policy every year to keep it active. On the other hand, seniority does not affect the insurance period of employees. You are covered as long as you are part of the company.
In addition, the group’s health policy offers significant benefits to employees. This cover protects the policyholder (employee) as well as the members of his family. Here are some key benefits.
Extended Coverage: Some collective health insurances can cover boarding costs in addition to the costs of anaesthesiologists, surgeons and consultations. “Other expenses covered include those for oxygen, anesthesia and diagnostic equipment, as well as dialysis and x-rays. The policy also includes cover for home hospitalization. Plus, maternity-related expenses are covered,” said Mayank Kale, CEO and Founder of Loop Health, a group health insurance agency.
Regular health checks: Employers can perform regular health checks for their employees. Employees can also start their treatment or medication as needed.
“Regular check-ins will also help employees make changes to their daily routines and learn what works for them and what doesn’t. And since employers will insure the entire company, the group health insurance policy will be profitable and economical for everyone,” Malik said.
Readily available: New hires could be easily insured through existing group health policies, benefiting both employer and employee. Additionally, additional policies can be added or removed based on the needs of the employee. Plans can also be modified to meet the different needs of each individual and their family members.
Hassle-free claims process: Claims are settled quickly without any intermediary because the employee only has to contact his employer with the invoices and the necessary documents. The time savings associated with these formalities could be crucial in many respects, making comprehensive group health insurance a better option than having personal insurance coverage. The insurance policy will also cover ambulance costs, more minor surgeries like eye surgery, dental coverage, etc.
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