4 Tips for Choosing Health Insurance for Your Small Business

As an entrepreneur, you are not only responsible for the smooth functioning of your business but also in charge of your employees’ safety. Thus, while implementing safety protocols in the workplace, you can opt for a group insurance policy for employees to further safeguard your staffs.

On that note, let us understand what group health insurance is and how you can choose the right coverage.

What is Group Health Insurance for Employees?

Group employee health insurance is a kind of health insurance policy that covers people working under the same organization. Such insurance is beneficial because it protects employees by covering their medical expenses without them having to pay any premium. Many companies offer group medical insurance to their employees as a job perk and pay the premiums on their behalf.

One of the biggest group health insurance benefits is that employees can opt to have their family members covered as well, though the employee might have to pay for this on their own.

How to Choose a Group Health Insurance Plan?

Now that you have a fair understanding of what group health insurance is, let’s look at a few tips to help you choose the right group insurance policy for employees:

1. Look at the sum insured: The sum insured refers to the maximum amount of money that the insurer will offer to each employee/family in case of a claim. While deciding which group medical policy will work for your organization, consider the rising medical inflation costs and the kind of hospitals your employees would require. Also, as the sum insured increases, the cost decreases, so do not hesitate to opt for a group mediclaim policy that offers adequate coverage.

2. Consider the room rent limit: You must also consider the highest category of hospital room the insurance policy allows. The room rent limits are usually around 1% of the sum insured. The room rent limit will help you understand if the sum offered by the insurance policy is sufficient to cover the costs of a hospital room in your city. If the room rent limit is insufficient, your employees might end up paying for a lot of their expenses from their own pocket.

3. Check the network of hospitals: Insurance companies have tie–ups with a network of hospitals that allows them to settle bills directly. To ensure that your employees do not have to scramble for cash during troubling times, check the network of hospitals offered by the insurer. Choose an insurer that has a wide network of hospitals so your employees can comfortably select a treatment centre of their choice when they need to.

4. Waive off waiting periods: The waiting period refers to the time during which your employees have to wait to avail of certain treatments. To help your employees get instant access to coverage, you can pay an extra premium to waive off all the waiting periods.

With these tips, you can choose a group insurance policy for employees with ease. As a business owner, it is essential that you value and protect your employees’ wellbeing. Thus, you can offer individual and group health insurance policies that are designed to meet your and your employees’ needs. While availing a group health insurance, make sure that you settle for an insurer with a large network of branches and brokers. Also, do not forget to read the policy wording carefully before making the final purchase.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.