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All Things to Know about Group Health Insurance

Health issues are common due to stressful modern lives. Furthermore, healthcare costs are escalating. A hospitalization may result in major financial difficulties and use up all your savings.

One way to protect yourself against such extremities is to purchase health insurance. However, individual coverage for a higher amount is expensive. This is why procuring coverage under a group plan is beneficial.

What is group health insurance?

Group health insurance plans are offered by employers and are single policies that cover all employees and sometimes their dependents. The premium paid by the employers is determined by combining the risk factors of the entire group. Most Indian organizations offer such coverage to their employees to boost their morale and improve their efficiency.

A common question asked by many is “how does group health insurance work?" The answer to this is—it is a master policy that covers every member of the group for which the plan has been purchased. All the terms, conditions, inclusions and exclusions are the same for every member.

Benefits of group insurance plans

If you are still asking the question “is group health insurance good?”. Let us look at four benefits of such plans.

1. Lower premium

Compared to an individual health policy, the premium payable on group insurance is lower and hence it is more affordable. The latter plans are almost 30 percent cheaper than individual policies.

2. Maternity coverage

You may receive maternity benefits from the first day of enrolling under a group policy. This is one of its major advantages when compared to individual plans.

3. Waiting period

Unlike an individual health plan, group policies do not have any waiting period. This means if you suffer from any pre-existing condition, coverage for the same is immediately available.

4. No medical check needed

You will not have to undergo medical checks to enroll in a group plan. Furthermore, there is no requirement of submitting health reports to register under such policies.

Disadvantages of group insurance plans

There are certain disadvantages of a group insurance plan as well. Here are two of its major cons.

1. Insufficient coverage

Generally, when you compare individual vs. group health insurance, you will realize that coverage under the latter is lesser. The cover under the group plan may be insufficient and in case of any major illness, it may be inadequate.

2. Discontinuation

Group insurance coverage is available only until you are employed with the organization. One of the biggest disadvantages of group health insurance is that the coverage is discontinued if you quit your job or lose your employment.

Coverage available under group policies

Most insurance companies provide customization of group plans. Some of the common covers include:

  • Pre- and post-hospitalization expenses
  • Day care treatments
  • In-hospitalization costs such as room rent, nursing charges, tests, and other treatments
  • Domiciliary hospitalization

Contrary to belief, the cost of opting for a group health insurance policy is not high. Most insurance companies offer such coverage and it is recommended you do your research before making your decision.

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