Group insurance is a health insurance plan that covers multiple individuals under a single policy. This plan gives all group members the same insurance coverage regardless of age, gender, occupation, or socioeconomic standing.*
Group insurance reduces the need for each member to purchase a separate insurance policy. Often, firms provide their employees’ group insurance with the same health insurance benefits as part of the compensation benefits. This plan provides coverage for group members and their dependents.
Classes of Groups
A group insurance plan provides coverage for the following groups:
- All members of a formal group, also known as an employer-employee group, were employed by the same employer or group owner.
- A corporation, a business organisation, and a professional group are examples of formal groups.
- Employers pay for the insurance coverage.
- Members of an informal gathering may be affiliated with a society or cultural organisation.
- In such a group, the policy is purchased by the group owner or administrator on behalf of the group members.
- They might share a credit card or account.
Characteristics of Group Insurance
These are a few significant characteristics of group insurance:
- As risk is distributed across a broad population, a group insurance plan offers basic coverage at competitive premium prices. It signifies that all group members share the same health insurance benefits.
- Regardless of the group size, all members are covered by the same group insurance plan. Plan options include group life insurance, group health insurance, group travel insurance, and group personal accident insurance.
- A premium may be levied on members or paid by the organisation.*
- A group member is protected so long as he remains part of the group. If a member leaves the group, the protection ends.
The advantages of group insurance
Individual group members, including employees and employers, can benefit from purchasing a group insurance plan. Buy health insurance online, where the primary benefits for companies and employees are as follows:
- The premium for group insurance is less than for a member’s coverage. These plans lower the insurance provider’s responsibility by spreading the risk throughout the group.*
- Since the employer frequently pays premiums, group insurance is a practical approach to cover all employees in different income groups.
- Often, a group insurance plan covers group members’ family members. For instance, several group health insurance apps may cover spouses, dependent children, and group members’ parents.*
- Group members can claim tax deductions for group insurance premiums paid on their tax returns. **
- Group insurance provides members with uniform coverage. It enables those with lesser incomes to receive the same coverage as those with higher incomes.
- When a member leaves a group, several group insurance plans can be converted into individual coverage. In this instance, the member is required to pay a conversion fee.*
- Members of the group are not required to meet prerequisite conditions. On the other hand, individual insurance plans frequently require applicants to undergo a health examination.
The eligibility conditions for a group insurance plan are listed below:
- The minimum number of group members varies between group insurance plan types. Some programmes may demand a minimum group size of 10 members. Others may demand 50 group members to qualify for group insurance.*
- The minimum age to enter is 18 years old.
- The age limit may vary. Some plans have an upper age limit of 60 years, while others permit enrollment until age 80.*
- Every member must be an active and full-time participant in the group.
- Group insurance is a clever and easy alternative for covering all group members under the same plan. Such a plan offers numerous advantages to both individual members and the organisation as a whole. One can also sign up for cashless health insurance.*
*Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘