As the name suggest, Group Health Insurance is the insurance that covers a group of people, usually who are professionals or employees of a common group in a society. In today’s competitive environment which is driven by a lot of challenges – health is the utmost priority of an individual. Group Health solutions are provided by esteemed companies to employees where the family members can work at the best level to the employees.
Basic characteristic of a group health insurance
- Other than the purpose of obtaining insurance, the group of people who want to get insured must share something in common.
- On behalf of the members and the carriers, there must be a master policy holder who will retain the contract. Such covers are normally available at a discounted rate.
There are two ways of classifying Insurable Groups – “Employer-employee” or “Affinity groups” whose members have a common factor associated with them other than employment.
In case of group insurance for Employer-employee category, the master policy holder is essentially the employer and for other groups it would be the entity that has an insurable interest in the lives of its members.
An interesting feature that is a part of the group insurance is that the premium cost of an individual basis is actually the same amount for the entire person in a group.
Group health insurance is provided in various countries. For example, in Canada, the group insurance can be bought through larger brokerage firms because brokers can provide better rates than the individual companies.
In India, too, group insurance is provided in large numbers. It provides the healthcare coverage to a group of people who share common similarities – typically as employees of a company. The plans are structured to be uniform in nature, providing the similar benefits to all the employees or members of a group.
As a part of the employee welfare program, majority of companies provide Group Healthcare Insurance. Each group can get the plan customized based on the employees demographics.
Requirement for group life insurance
In this type of insurance, a group of people, usually employees of a company, members of union or association get to cover a group of people. So while a person may not have an individual insurance policy, the family can benefit under group insurance.
In case you are applying as a group for the insurance policy, you must keep it in mind that the company considers the size and the financial strength of the group.
It is highly recommended for an employee to apply for group health insurance so that the group can benefit at large from your policy. It isn’t difficult to get the policy provided that you fulfill the basic criteria of application. Group health insurance policy is recommended over an individual policy. With this policy, the family or group can avoid the struggle that goes in searching for an appropriate medical aid. Utilize it to the best of your advantage.