How Does a Group Health Insurance Coverage for Small Business Owners Help?

Group health insurance coverage for small business owners supports employee health while reducing their medical expenses. This, in turn, increases loyalty and trust amongst employees and strengthens business reputation.

As per the Press Information Bureau data, there are 7.47 crore such businesses in India employing over 32.82 crore persons. If you are one of them, learn here how such insurance may help both your employees and your business growth.

What is Health Insurance Coverage for Small Business Owners?

A health insurance coverage for owners of small businesses is typically a group policy which covers the medical-related expenses of employees working for such a business. An employer provides such a cover as an employee benefit, which covers employees and their dependent family members.

Unlike a regular health insurance policy, a group health insurance policy usually has a shorter waiting period or sometimes does not have a waiting period at all. These policies serve similar coverages to employees, which helps foster trust, loyalty, retention, etc.

Since small businesses usually operate with a limited workforce, employees form the backbone of the business. Therefore, having group health insurance becomes both crucial and highly beneficial for small business owners.

Also Read: Difference Between Sum Insured vs. Sum Assured

Key Benefits of Having a Group Health Insurance Coverage for Small Business Owners

Now that you know what group health insurance mean for small businesses, note these benefits that, as a business owner, you may enjoy:

Protects Your Employees from Unexpected Expenses

Also referred to as Group Medical Coverage or GMC plans, they help maintain employee productivity. Suppose a business that runs without a GMC and its employees face a medical emergency that requires hospitalisation and related expenses. Here, not only does productivity hinder, but the employee’s financial stress increases.

Thus, with group health insurance, an employee can cover their own and their family members’ expenses without much financial pressure. This brings peace of mind and a sense of security, which increases their productivity.

Boost Employee Trust and Retention

Such insurance policies typically include features like preventive check-ups, wellness programmes, teleconsultation, etc. Also, such insurances may not have a strict waiting period for Pre-Existing Diseases (PEDs), which further increases the flexibility of employees in terms of medical coverage.

Such features of a group medical plan therefore not just increase employee benefits but also showcase that, as an employer, you take care of your employees. As you retain talent in your organisation due to employee satisfaction, your reputation as an employer increases.

Affordable Premiums

As its name implies, group health insurance coverage for small business owners covers all of your employees under one policy. Thus, it allows you to save further on expenses. It is because, instead of buying covers for individual employees, you buy them as a group, which reduces the expenses of premiums and costs to renew health insurance.

Now you may wonder why group health insurance comes with a lower premium. This is because the overall risk is spread across multiple employees, which reduces the insurer’s liability and makes the policy more affordable.

Tax Benefits

By keeping your employees’ health secure, while you establish trust among them, you also get tax benefits from such insurance. As per Section 37(1) of the Indian Income Tax Act, as a business owner, you can claim the premium paid for these policies as a deductible expense.

With Bajaj General Insurance, buy a group health insurance plan and cover your employees’ medical expenses and strengthen your business foundation. Download the Bajaj General app today!

What Does a Group Health Insurance Coverage for Small Business Owners Facilitate?

Explore here the benefits your employees get with such a policy:

Inpatient Hospitalisation Expenses

While such policies cost less than an individual insurance plan, your employees still get similar benefits. For example, depending on your insurer, with such a policy, you can cover the inpatient hospitalisation expenses. These include costs for a required surgery, ICU charges, expenses for room rent, etc.

Option to Cover Family Members

With this insurance, you not only cover the health expenses of your employees but also allow them to cover their family members, increasing employee satisfaction. Its family floater options typically include adding their spouse, dependent children and in some cases even their dependent parents.

Access to Network Hospital

Getting group insurance from an insurer also allows your employees to get quality treatments from network hospitals. Most insurance companies in India have tie-ups with thousands of reputed hospitals. Such wide access ensures your employees’ health, which boosts productivity and ultimately contributes to your business growth.

Maternity Benefits

With a group health insurance plan, you can also offer employees the option to add riders. One such rider is maternity coverage, which allows them to enhance their policy to include pregnancy-related expenses, childbirth and newborn care.

Also Read: Personal Accident Insurance: When Do You Need It?

Final Word

A health insurance coverage for small business owners helps establish a healthy and committed workforce. With it, business owners can cover the medical expenses of their employees. This way, not only do employers take care of their employees, but their workforce also feels secure and stays productive as their medical expenses are covered.

With Bajaj General Insurance, ensure your employees’ health expenses and, with it, build a collaborative work environment that helps you grow!

Frequently Asked Questions

How many employees does a small business need to buy group health insurance?

As per the IRDAI regulations, a business must have a minimum of 7 employees to cover them under a group health insurance.

What happens to the group health insurance when an employee leaves the organisation?

Group health insurance coverage generally ends on an employee’s last working day since it is linked to their employment. However, they can maintain continuity by converting it into an individual policy within 30 days.

Can I customise the plan for the small team in my business?

Yes, insurance providers typically allow you to customise plans such as choosing sum insured limits, adding ride-ons, OPD, and wellness packages, etc.

What does a group health insurance policy typically exclude?

Group health insurance policies typically exclude any cosmetic surgeries for aesthetic purposes, self-inflicted injuries, weight loss or obesity procedures, etc.

How does an insurer decide the premium for a group health insurance plan?

They assess factors like the size of your employee base, their average age, medical history, and other factors and offer you an affordable premium.

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Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.