Interest is on the rise in learning about and exploring the benefits of group health insurance and individual insurance. The emphasis on good health and wellbeing has only grown in recent times. Keeping this thought in mind, the government has made it mandatory for companies to provide medical insurance to their employees. Though the importance of being secured via health insurance is well known, the advantages that an individual can derive from it are yet to be discovered by many. Insurance is considered a shield that protects individuals against adversities. It is wise to opt for it to keep your finances in check in case of emergencies.
So, if you are someone who believes that it is good to have insurance coverage in place for yourself and your loved ones, then you should probably also learn about its advantages. 💯
If you are wondering whether and how group insurance is more beneficial compared to individual insurance, this article will answer your questions. 💭 As group insurance is a high cost for your organization, both employees and employers must dissect the benefits and make the best possible use of it.
The Benefits of Group Health Insurance 💡
Group insurance offers benefits to both the parties involved—the employees as well as the organization. The advantages which group health insurance provides companies do not vary due to the strength or size of the entity. The terms and conditions attached need to be carefully read and followed.
Some of the advantages enjoyed by employers offering group insurance are detailed:
- Happy and healthy employees make way for a positive work environment
The best possible way to beat any illness is to have a positive approach. You can gain a positive approach by being mentally stress-free, and medical insurance helps you achieve this. Even though having insurance does not prevent illness, it provides a safeguard and helps your treatment. Group insurance acts as a safety net for the employees and their loved ones. With this guarantee, employees will feel more secure and work better to ensure that the company thrives.
- Savings in tax 💰
Tax benefits can be enjoyed by employers who offer medical insurance to their employees. As per some provisions of the tax regulations, employers can claim an exemption for certain tax payments if they provide group insurance to their employees. This makes it a win-win situation as it helps save costs and provide care to people.
- Attracting high-quality, talented employees
When a company offers health insurance as a part of its CTC, potential employees find it a contributing factor in deciding where to work. It shows how much employers care for their workforce. This gives such companies an edge over their competitors and turns the decision in their favor when an employee is making a choice.
- Provides good value for money ✔
Group plans are generally customized as the risk and rewards are all shared by the employees covered under the program. The premium cost is also economical as it covers a bulk of employees.
All of these reasons make group insurance relatively cheaper when compared with an individual plan.
Employees prefer this for more than one reason.
- Cost effective
It is more economical as it provides wide coverage at a decent cost. The large sum as shared with fellow employees makes the offer more attractive.
- Acts as motivation 🔝
Employees feel valued when they know they are being taken care of and their health matters to their organization. This also helps them be productive at work and devote quality time to their own growth.
- Smooth and hassle-free claim process 📃
Individual policyholders have to go through several documentation processes, making the settlement claim time consuming. For group claims, on the other hand, employees simply need to upload all their medical bills on the portal, after which the employer sends it to the insurance agency in one shot and processes the reimbursement.
- Coverage for pre-existing diseases is included
Employees covered under a group medical plan can make claims for pre-existing diseases without having to undergo a waiting period. This is one of the biggest advantages one can derive from group plans. The permit to file a claim for pre-existing diseases is available from day 1.
Benefits in Abundance!
This article sheds light on the benefits available to both employers and employees in a simple and understandable manner. Group insurance is also called employer employee insurance as it provides good benefits to both parties. Employers understand the importance of health insurance given the rising medical cost and importance of employee wellbeing. Covering their staff under a single plan offers more benefits than individual plans.
This gives employees a platform to get regular updates regarding their health. Additionally, it allows them to take substantial time for their physical and mental wellbeing. Thus, an employee is positively motivated to boost their work performance and health statistics, enjoying a balance therein.