If you are working in a corporate world, then you must be aware of group health insurance. Besides getting your dream job and a good salary, you will also be covered under the company's group health insurance plan. Companies all over the country are now offering group health insurance for employees to increase their retention.
When it comes to customization of the plan, individual health insurance is better than group plan. However, if you buy group health insurance, then you will eligible for many benefits. If you opt for an individual health insurance plan, you have to pay a higher premium, whereas if you buy group health insurance for your family or corporate family, you will have to pay a low premium. This plan will insure a group of people under a single plan, and help you save money. Given below are some benefits of group health insurance that shows why this plan helps you spend less:
Lower Premiums
If one candy is of Rs 2/- and a candy box is of Rs 16/-. Then which will be more beneficial. Yes, you got it right, buying a box of candies is much cheaper. Group plan is just like a candy box. You have to spend less, if you buy in bulk. You have to pay a low premium to get your family members or corporate employees insured. You and people that are insured will get the complete coverage for the medical expenses.
Tax Benefits
You will get the tax benefit for the premium that you pay for your group health insurance under Section 80D of the Income Tax Act, 1961. If your group plan for employees covers you, your spouse, and dependent children, you can get tax benefit up to Rs 25,000/- in a financial year.This amount also includes Rs 5,000 as an exclusion towards health check-up. If your group plan has senior citizens, then this deduction amount goes up to Rs. 50,000/-.
Cashless Claims
Many insurance providers offer the benefit of cashless treatment. If the insured person is hospitalized or undergoes medical treatment in one of the network hospitals of your insurer provider, you can make a cashless claim. All the medical expenses and hospitalization bills will be directly settled by the insurance company with the network hospital and you will not have to spend anything from your pocket. All the expenses incurred during the day-care procedures and pre and post-hospitalization period also get covered by group health insurance for employees.
Discounts
If you make no claims in a year after availing the group insurance plan for employees, you will be eligible for the 'No-Claim Bonus' discount. This benefit will give your minimum discount of 5% on your premium rates during policy renewal. The discount can go up to 50%.
With the help of the above-mentioned points, you must now understand why buying a group health insurance means spending less. However, it is highly advisable to go through the plan's terms and conditions. This will help you understand the benefits you are eligible for and the exclusions that you should keep in mind. So, go ahead and buy group health insurance to keep your family and corporate family secure.
