For every employer, small or large, it is important to ensure that all employees enjoy good health. While they may not be able to buy individual health insurance, employers can make employees happy by offering group health insurance. Some employees even look for health insurance as one of the first things while joining an organization.
This type of insurance is usually offered by various types of organisations – companies, banks, housing societies, business groups, and other types of organizations, to their employees. The cost of the premium is usually borne by the organizations. Most of the companies offer group health insurance plan, which means that the health plan is for all its employees.
Having a health insurance policy is essential because of the increasing lifestyle-related diseases or problems that are becoming common with every passing year. Offering a group health insurance plan thus aims at increasing your employees’ loyalty to your organization. You should understand how this insurance plan works and resolve all your queries before you decide to buy a group health insurance. However, the number of group health insurance options available in the market can often leave you befuddled.
Worry not, here is the checklist that you must consider when buying group health insurance so that it fits perfectly well with your organization’s requirements:
- Premium Cost
Group health insurance covers employees and their families as per the chosen plan. Group Health insurance is lower in cost as compared to health insurance bought individually. As an organization, you can negotiate for a discount from the insurance company. Along with this, a group health insurance also provides the employers with an option to select to pay the premium either monthly, quarterly or yearly at their convenience.
- Tax Benefits
When you go for a group health insurance as an employer, you can claim the tax benefits on the premium paid for it. Hence, group health insurance helps you reduce the tax liability under the various sections of the Income Tax Act. However, your employees won’t be entitled to IT exemption under the group health insurance coverage provided by you. So, make sure you know about the tax benefits related to the group plan you choose.
- Exclusions of Group Health Insurance
Just like you look at the benefits and inclusions related to a group health plan, it is crucial to check what is excluded in it. For instance, there are some group insurance plans which ask for fixed or variable co-pay to be paid by the employee during claim settlement. Depending on the plan you choose, you should understand the benefits that your employees won’t get. This will help you clear matters for your employees in advance.
- The Right Insurance Company
The choice of right insurer is essential to make the most of a group health insurance plan. While there are several renowned insurance companies that offer group health plans, choosing one is not as easy as it may seem. It is important for you to research about the insurers in terms of their market reputation, claim settlement ratio, product features, and other similar aspects. In case you find it difficult to choose an insurance company, you should ask for help from an insurance broker, such as SecureNow.
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