If you run a small business, you must have considered getting group health insurance for your employees. While professional organisations must provide health insurance to their employees, it is also highly beneficial to both the employees and the organisation, with benefits such as better employee retention, higher employee productivity, and tax respite.
Group insurance plan is a type of health insurance specially designed to cover the needs of an entire group. These plans provide a unified policy for all members of the group affordably and conveniently. However, with the varying needs of different individuals and the requirements of the organisation and regulators, it often becomes difficult to choose a single policy.
How do you choose the right group health insurance for small businesses?
Due to the relative definition of small businesses with varying numbers of employees and profits, locations, and needs, it is difficult to give a definitive answer for the best group health insurance plan. However, if you are a small business, these steps can be followed to get the right group insurance plan for your group’s needs.
- The first step for choosing the right policy is to consider the number of employees your organisation has. That is because this number can influence which insurers and type of insurance you can opt for. For reference, the IRDAI requires at least 20 employees to opt for a group policy. However, some insurers offer microinsurance plans for companies with at least five members.
- Determine the needs and requirements of your employees and divide them into non-negotiables and good-to-haves. This should help set realistic expectations and choose the right plan for the right price.
- Do your research and understand the current offerings by contacting insurers.
- Assess the company’s finances and set a budget for the policies.
- Determine the reliability of the insurer and go ahead with purchasing the policy.
What are the benefits of small business group health coverage?
As small business group insurance plans are specially designed to consider small groups’ needs, these plans benefit both the organisation and its employees. These group healt insurance benefits also incentivise the groups, making the process smoother and more accepted.
1. Unified coverage for all members in a single policy
One of the core benefits of group policies is that these plans cover all group members in a single policy regardless of age, gender, socio-economic background, and previous medical ailments.
2. Additional coverage options
Group plans offer additional coverage options that might otherwise not be available to individual and family policyholders.
3. Ensures financial security for employees
By providing health insurance, organisations can ensure financial security for their employees. That is because this policy reduces out-of-pocket expenses for the employees in case of medical emergencies they face.
4. Boosts morale and productivity
At a time when there are growing concerns over health risks and healthcare costs, employer-sponsored insurance lends to higher morale and productivity.
5. Affordability
Group plans are typically a lot more affordable when compared to individual plans for each member. The cost is divided, especially when covering a considerable number of individuals, and the policy is a lot more affordable.
6. High customisability
Group plans are highly customisable, allowing groups to build the right policy for their specific needs. Whether you run a factory or a corporate office, group plans can fit your needs. For example, it is possible to offer pre-existing disease coverage, maternity expenses, and coverage for dependents.
7. Tax benefits for the employer
The premium paid for group plans is also tax deductible, thus providing tax benefits to the organisation
8. Better talent attraction and retention
In today’s world, health insurance is one of the decisive requirements individuals look for when joining a new company.
Where to buy group insurance plans?
There are several ways by which you can purchase group health insurance for small businesses. The first way to do so is by directly consulting with an insurance provider or an affiliated health insurance agent. That is because they offer the maximum customisability and cost-effectiveness. Individuals can also purchase a group plan through a broker. This will help organisations in choosing the right policy for their needs. The third method is to buy a policy from your bank using the bancassurance model.
Once you have identified an optimal method to buy insurance for your group, check the eligibility requirements and assess whether you can purchase one. If you cannot choose an insurance provider for your needs, you can check out Niva Bupa. They are one of the leading insurance providers in the country, with pre-existing disease coverage, coverage for parents, cashless claims, and much more.
Conclusion
In conclusion, by considering the above steps and knowing the benefits, choosing the right group insurance policy for your small business is possible. Remember that the first step should be understanding your group’s particular needs and regulatory and organisational requirements. So be compliant with the law, all while protecting the lifeblood of your organisation and the employees and develop a safe and productive working environment at your company.
