Whether the industry is small or big, its real asset is its human resources. Such owners of industries who consider the employees as their property, must buy group insurance for them.
An employer or business owner purchases a health insurance policy under group insurance that provides health cover to all employees working in his organization for a specified period of time. The employer pays the premium in this insurance policy. If the employees of the organization have to bear any health related costs then the employees can make a health insurance claim through this policy.
Group health insurance provides health cover to the employees in the same way as an individual health insurance. Through a group health insurance policy, the employer ensures financial security to its employees regarding their health, resulting in a better performance for the organization and loyalty to the company.
In this process, sometimes industrial owners buy health insurance policies for the employees of their organization but do not get health insurance policies for themselves. Therefore, business owners should get a health insurance policy for their employees as well as themselves.
Next, we will discuss in detail some of the things an employer can do about health insurance policy for the employees of his organization and health insurance policy for the owner of the organization.
Group Health Insurance Benefits For Small Business Group
- Comprehensive Coverage :
A group health insurance policy provides broader coverage than an individual health insurance policy. A group insurance policy also covers the employee’s family members. The sub limits and waiting period in this policy are also less as compared to individual health insurance policies. It also provides additional benefits to the employee like maternity cover which is not normally included in individual health insurance policies.
- Premium Waiver :
A group health insurance policy provides broader coverage than an individual health insurance policy. A group insurance policy also covers the employee’s family members. The sub limits and waiting period in this policy are also less as compared to individual health insurance policies. It also provides additional benefits to the employee like maternity cover which is not normally included in individual health insurance policies.
- Less Process :
Group Health Insurance For Small Business Owners does not require any type of medical examination to apply for and receive coverage. Hence the process of group health insurance policy is quite fast and easy.
- Tax Benefits :
Group insurance allows the employer to claim tax deduction on the premium paid for a group insurance cover purchased under section 36(IB) of the Income Tax Act. Thus the cost for the employer to purchase group health insurance for employees is reduced to a great extent.
Coverage Under Group Health Insurance For Small Business
- Death :
This type of policy also provides death benefit. If the employee dies unfortunately during employment then a fixed amount is paid by the employee to the person named in the policy.
- Disability :
If an employee becomes disabled due to some kind of accident during employment, then through this insurance policy he is paid a fixed amount at regular intervals for a fixed period.
- Hospitalization :
Group health insurance policy provides cover for hospitalization expenses to the employees as well as their family members against hospitalization expenses.
- Travel accidents :
Employees who are required to travel frequently for business are also provided cover against accidents involving bodily injury, loss of luggage etc.
Group Health Insurance For Small Business Owners Buying Tips
If you are a business owner looking to buy a group health insurance plan for your employees, there are a few things you need to keep in mind. The same things have been discussed in this article.
- Policy Comparison:
Employers should compare the different types of insurance plans available in the insurance market before purchasing a group health insurance policy for their employees. You can choose a good group health insurance policy keeping in mind the needs of your business employees.
- Adequate Coverage:
In a group health insurance policy you purchase group insurance for all the employees in your organization. So you should pay special attention to purchasing adequate coverage that can meet the needs of your business’s employees.
- Network Hospitals:
While purchasing a group insurance policy, the employer must also check the list of network hospitals of the insurance company to see whether the insurance cover is provided in the network of hospitals supported by the company in the areas where the company operates. The benefit of this is that if an employee gets his treatment done in a network hospital, he can pay his treatment expenses through cashless means.
- Policy Terms :
The conditions of different insurance companies also differ. While purchasing the policy from any insurance company, you must read its terms and conditions carefully so that the employees of your organization do not face any kind of trouble while claiming the insurance amount.
- Exclusion :
The employer should also keep necessary information about its exclusions at the time of taking the group insurance policy and also inform its employees about the same. So that while claiming the insurance amount in future, he should keep these things in mind and avoid unnecessary trouble.
- Sub – limit:
There are different types of sub-limits imposed by the insurance company in the health insurance policy. Therefore, while buying the insurance policy, you should check these limits in detail.
- Budget:
Employers should also keep their budget in mind when purchasing group health insurance for their organization’s employees. Apart from this, they should also see who will be included in this scheme like the employer himself and his family and the employee and his family etc. After analyzing all these things, the employer should choose the health insurance policy according to the needs of the employees of his organization.