Group Health Insurance

A suicide bomber’s blast ended more than 100 lives in the northwestern Pakistani city of Peshawar, devastating a mosque in a supposedly secure sector of the city, and sending smoke plumes into the sky and panic through the streets.

What is Group Health Insurance?

A group health insurance plan provides medical coverage for a group of people. It is usually purchased by companies or organizations to provide additional medical coverage to their employees as a perk because the premium amount of the group medical insurance plan is paid by the employer.

Advantages of Group Health Insurance Policies

Employees are the treasured part of any organization. These days more and more companies are becoming employee-centric and corporate health insurance has emerged as one of the most preferred benefits to lure new talent. It plays a crucial role in influencing the psychology of an employee. It makes him feel part of a company and thus, it curtails employee attrition rate and unrest in labor unions. Moreover, it increases their productivity which increases profitability of a business. Special insurance schemes where families are also covered for benefits make employees faithful towards their employers. Moreover, by offering coverage to your employees, you become eligible to get tax deductions under Income Tax Act. So group or Corporate health insurance policy is a win-win situation for both employees and employers.

Benefits of Group Health Insurance for Employers:

  • Helps in Employee Retention: In this modern era when there are a lot of jobs in all the fields, employee retention has become a difficult task. However, if the employer provides benefits like health insurance coverage to all its employees and his/her families as well, then the chances of an employee staying in the company increase.   
  • Tax Benefits: As mentioned above both employer and employees are the beneficiaries in a health insurance plan for the group, thus the employer also gets tax benefits for providing such policies to its employees.
  • Motivated Employees: Today, when the medical costs are at its peak, having a corporate health insurance plan, motivates employees.
  • Better Benefits in Low Cost: Health insurance for employees provide better benefits in comparatively lesser cost than individual health insurance policy.

Benefits of Group Health Insurance for Employees:

  • Pre-Existing Disease is Covered from Day 1: Unlike any individual health plan, a group health insurance policy starts covering pre-existing diseases from the day an employee joins the organization. In this way, there is no waiting period for any pre-existing disease.
  • An Extensive Range of Coverage with No Limit on Diseases: Apart from covering pre-existing diseases, a group health insurance plan for employees provides a wider coverage with no limit on diseases.
  • Larger Maternity Coverage: A wider maternity cover is one of the best advantages given to young employees. Most of these plans provide coverage for both C-section and normal deliveries. Some plans as well cover the newborn babies without a standard 90 days of maternity cover.

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