Group Medical Insurance

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A Group Medical Insurance plan is a health insurance plan that provides coverage to members of a group that tends to be employees of a company or members of an organization. Members of the group usually receive insurance at a reduced cost because the insurer’s risk is spread across a group of policyholders.

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The primary advantage of a group plan is that it spreads risk across a pool of insured individuals. This benefits the group members by keeping premiums low, and insurers can better manage risk when they have a clearer idea of who they are covering.

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The vast majority of group health insurance plans are employer-sponsored benefit plans. It is possible, however, to purchase group coverage through an association or other organizations.

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Advantages For the Employer:

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1. Motivated Employees: In today’s scenario, when medical costs have reached to a great height, corporate health insurance is considered as an added benefit. By insuring against higher hospitalization costs, employers can motivate their employees.

2. Helps in Retention of Employees: These days more and more companies have become employee-centric and corporate health insurance has become one of the most preferred benefits to attract and retain talented employees. The group policies also cover the family members of the employees, making the employees feel more attached to the organization.

3. Low Cost: Group health insurance policies can be bought at low or no cost to the employee, as it is like buying in bulk, gives discounts.

4. Easy Premium Payment Options: Depending on the company’s policy, an employer can choose to pay the premium either monthly, quarterly or yearly as per their convenience.

5. Tax Benefits: Employers get tax benefits on a group health insurance, and the policy can help in reducing their tax liability. 

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Advantages For the Employees:

1. Default Insurance Cost: All members of the group get the ‘auto cover’ simply by being part of that group. It ensures basic insurance coverage to people who are without any insurance.

2. Institutional Support During a Claim: As irrespective of the health state, insurance is offered to all members of the group, it is of great value to people who are looking for a health insurance but cannot get it at an affordable rate because of their current health state.

3. No Medical Check-Up Is Required: When it comes to a group health insurance, you don’t need to undergo a medical checkup and submit medical reports to get enrolled under a group health plan.

4. Maternity Coverage from Day 1: From the Day 1, maternity expenses are covered by the group health cover in almost all companies. It means, if you join a company and become the part of a group health insurance, you will get maternity benefits on an immediate basis.

5. No Waiting Period: There is no concept of waiting period in group health covers and thus, even illnesses like heart issues, diabetes, etc.; are covered from Day 1.

6. Useful for Employee’s Wellbeing: Group health insurance policies play a crucial role in securing the health of employees and their families.