Group health insurance policies offer coverage to employees of an organization. In such policies, the employer pays the premium on behalf of the employees, against which they are offered coverage. Generally, such policies provide a large cover, which is shared among the group of employees. Read on to know more about the various aspects and advantages of such a plan.

Benefits on offer for employees

No waiting period for pre-existing ailments

In case of individual or family health plans, there’s a waiting period for pre-existing diseases. Though it varies across insurers, in most cases it ranges from 2-4 years. However, this is not the case with group health policies. Employees are reimbursed costs for treatment of pre-existing diseases by such policies.

Preliminary medical check-ups aren’t required

Availing individual and family floater plans call for medical check-ups, based on which the premiums are determined. However, that’s not the case with a group health plan. When you are covered by such a plan, preliminary medical check-ups are waived off. You are eligible to receive coverage right from the day you are enrolled under the plan.

Maternity coverage

Most group health plans offer maternity coverage whereby the insurer bears all the cost related to the baby’s birth. In case of family floater plans, there’s a waiting period before you can avail maternity coverage. Not only this, but a group health plan also offers coverage to the newborn, right away. In case of floater plans, the newborn is generally covered after 90 days of birth.

Coverage for a wide range of disease

A group health insurance plan generally covers a range of diseases with lesser exclusions and limits. As compared to individual plans, the scope under a group plan is far more inclusive.

Benefits on offer for employers

Tax benefits

Since employers pay the premium for a group health plan, they can avail tax benefits for the same. The premiums paid qualify for tax exemption under section 80D of the Income Tax Act, 1961. Also, since a large number of employees are covered, the premiums are generally on the lower side.

Helps in employee retention

Employee retention is of paramount importance for any organization. A group health plan establishes you as a thoughtful employer, caring for your employees. This goes a long way in retaining your employees.

Essential thing to note

It is essential to note that the benefits of a group health plan are in force until the time you are employed with the organisation. The cover ceases to exist once you leave and hence it’s essential to have a standalone health plan to ensure you are always covered.

Learn more about different Health Insurance Plans here.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product.  Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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