The world is moving towards buying a group mediclaim policy rather than preferring a single insurance policy. Most organisations prefer them because of the ease of admission, management and individuals because they seemingly provide more for the money they pay.
Group plans not only allow employers and affinity groups to stay responsible, but these plans also help secure the financial and insurance needs of their members. These policies cover people irrespective of their occupation, gender, age, or other factors.
What Is Group Health Insurance?
A group health insurance is a cluster of individual health insurance providing medical coverage for a group of people. These are usually purchased in an employer-employee relationship or where many like-minded people are willing to be covered by the same policy.
Types Of Groups
Primarily, there are two types of groups when it comes to buying group plans:
1) Formal Groups
These groups refer to a cluster of professionals who work for the same employer or owner. Policies for these groups are often termed employer-employee insurance and are purchased by the employer.
2) Informal Groups
These groups refer to a cluster of members who do not necessarily work for the same employer or organisation. Instead, these groups can include members from the same cultural association, society, or other informal setting-based association.
What Does A Group Health Insurance Policy Cover?
A valid group insurance policy covers many primary and secondary expenses along the line. With it, you can eliminate the need to pay cash for treatment at most hospital chains and cover the cost of ancillary expenses related to treatment. Most policies also cover pre-and post-hospitalisation charges.
Features Of Group Mediclaim Policy
Here is why group mediclaim policies are famous:
I) No Medical Checkups Involved
Unlike individual policies, these plans have more straightforward guidelines. They even cover people with pre-existing medical issues and do not require medical checkups before policy activation.
ii) No Co-Payment Clause
People aged 60 and above who have individual policies can bear part of the claim by applying for co-payment. However, such a facility is not available for health insurance plans with no co-payment clauses.
iii) No Waiting Periods
Unlike individual policies with exorbitant waiting periods, group policies have no waiting periods for most treatments. Some group insurers even cover pre-existing illnesses of the group participants from the first day of plan activation.
iv) Dependent’s Cover
Group health insurance offers coverage to not only group members but also their dependents, such as children, spouses, and others.
v) Policy Tenure
Unlike life insurance and most other insurance types, the validity of group health insurance is only one year. So the user has to renew their policy, and the sum insured and premium can change frequently.
vi) Cashless Facility
Group insurance plan providers partner with a plethora of hospital chains. This allows the members to avail of cashless settlement when they visit partner companies for treatment or checkups. They need not worry about the immediate cash outflow they would otherwise bear.
Benefits Of Having A Group Health Insurance
Given below are the benefits of having a group health insurance for the organisation and the individuals covered:
● 80D Deduction
The taxpayer can use the premium paid towards group health insurance to claim a deduction under Section 80D of Chapter VIA to help reduce their tax liability.
● Customisability
Given that groups will have diverse people with different needs, most group policy providers are happy to offer decent customisation offers based on salary, marital status, and more.
- Affordability
Most group insurance premiums are considerably lower than individual plans providing the same cover. It allows people to afford a higher coverage without entailing a higher premium outflow. Additionally, most employers are happy to bear the significant part of the charges involved, making these become super affordable for most individuals.
Eligibility Criteria For Group Mediclaim Plans
While eligibility criteria differ based on the provider, here are the most common clauses included under a group insurance plan:
- The minimum entry for the members should be 18 years.
- Members should be active/full-time members of the group.
- The maximum entry age is 60 years for enrolling in a group plan and 80 years in some other cases.
- Some policies require at least 50 members for qualifying for a scheme.
Why Opt For Plum Hq For Group Insurance Plans?
People are finally starting to value mediclaim insurance. But with premium costs on the rise and claims becoming difficult every passing day, it requires the group admin to be wary and careful of the plans they choose.
At Plum Insurance, we understand that one size doesn’t fit all. So we help you choose the perfect group mediclaim insurance plan for your team no matter what. We have a team of experts who possess immense knowledge and are capable of guiding you to get the best options available.