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  • What is the Purpose of Group Health Insurance Plans?

    Published on August 14, 2020

    When you plan for insurance, it has always been a perplexing experience, but not anymore. As more and more individuals understand the importance of insurance plans, the insurers have started to simplify the entire insurance process. They are removing hassles like exclusion of pre-existing diseases or long waiting periods making insurance more attractive safety tool than ever before.

    In addition to the plethora of medical insurance plans available, group health insurance has stood out for the longest time. It is a manner in which comprehensive health cover can be offered to all the members belonging to a particular group. This trend is seen more commonly among the large multinational organisations providing insurance cover for their employees.

    But it is not restricted to the employee-employer relation. It can also be purchased by holders of the same credit card, or savings account or similar social or cultural association. It depends on the organisation that you are associated with extending the facility of group health insurance. All these so-called groups must be formed in accordance with the guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI).

    How does group insurance work?

    A master policy is issued for the entire group, which covers all the subscribers to this medical insurance plan. The coverage offered is the same for each insured person. The terms, conditions, inclusions as well as excursions are the same for every subscriber to the policy.

    Almost all insurance companies offer group health covers. The coverage and the terms of the policy differ from each insurance company. A certain degree of customisation can be made to the entire group plan depending on the master insurance policy. These customisations in the master policy are the same for all insured individuals. At a nominal additional premium, you can also include your family members under the group health insurance plan.

    What are the benefits of a group health insurance cover?

    Lower premiums: When compared to other plans, group health covers are affordable. This is an excellent opportunity for first-time investors to opt for group coverage. Also, in addition to your existing health insurance plan, group covers increase the scope of insurance policy, which otherwise might not be covered under other health insurance policies.

    Waiting Period: Most group insurance policies do not have waiting period requirements. Thus any medical emergency occurring immediately after availing the insurance cover is included under your group insurance policy.

    No Medical Check-ups: Unlike other insurance plans, there is no mandatory requirement of health check-up before enrolling yourself under a group health policy.

    Maternity Cover: Almost all group policies extend maternity benefits to the insured. Once you avail a maternity cover, you need not wait for the waiting period that otherwise is applicable in case of a maternity insurance policy.

    While group health insurance covers come with a host of benefits, there are certain limitations to these plans. Once you leave the group / organization the coverage of your plan may case to exist. In addition, these plans may not always provide enough financial backup and it would be advisable to club them with covers such as critical illness insurance for a higher sum insured.

    The reason behind group health covers

    Group insurance cover is an added benefit over and above your remuneration. It serves as a way to secure the lives of the employees. Also, employees can add their family members by paying a nominal charge.

    To conclude, group policies are an excellent way to ensure that you have health insurance. Advantages like no waiting period, the inclusion of maternity coverage along with a cashless health insurance facility, make group insurance plans a perfect insurance cover for you.