Insurance in earlier days, was regarded as a confusing and complicated process with all the technicalities and its jargons. As the importance of having health insurance is increasing, insurance companies have begun simplifying the process. Hassles of pre-existing diseases and long waiting periods are reduced to make it more attractive investment. One type of insurance plan that has stood out for the longest time is a group insurance policy.
What is a group medical insurance plan?
From the various health insurance available, group medical insurance is a plan that is generallyoffered by employers to its employees. However, group insurance plans are not restricted to the employee-employer relation. These plans can also be purchased by holders of the same credit card, or savings account or similar social or cultural association. It depends on the organisation that you are associated which extends the facility of group health insurance. All these so-called groups must be formed under the guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI).
How does group insurance work?
Under group mediclaim policy, a master policy is issued that covers all the subscribers of the group. Under such master policy, the same amount of coverage is offered to each subscriber. It is for the individual subscribers, i.e. you, who can increase the coverage using top-up covers. Moreover, the terms and conditions, inclusions as well as exclusions are the same for all the members of the group.
Majority of the insurance companies offer group health policy, but the terms and conditions differ from each other. You can customise your group health insurance to a certain degree depending upon the underlying master policy. At a nominal additional premium, you can also include your family members to the plan.
How does a group policy differ from individual policy?
As the name suggests, group policy is for a particular group, whereas the individual plan covers one individual under its policy coverage. There is no separate date for the renewal of all policies in a group scheme whereas, for individual plans, each policy has a different renewal date. A group plan can be availed only upto a specific limit, whereas an individual health cover can be customised to include different policy riders that may be required.
What are the benefits of a group insurance policy?
Affordable premiums: As compared to the other types of health insurance policies, group health covers are more affordable alternatives. For first-time insurance buyers, a group health insurance is an absolute no brainer as it offers comprehensive coverage at lower premiums.
Waiting period:
Group insurance plans do not have a waiting period requirement. The moment you are enrolled in a group insurance scheme, your coverage begins. Thus, any medical emergency that occurs immediately after purchasing the policy is covered by your insurer.
No Medical Check-up: Unlike other insurance plans, there is no mandatory requirement of health check-up upto a particular age before enrolling yourself under a group health policy. This age limit for health check-up differs among different insurance companies.
Maternity Cover: A group insurance policy includes maternity coverage too. Maternity benefits have long waiting periods in other plans, but under group insurance, these can be availed right from the start.
When opting for different add-ons to your group insurance cover, make use of a health insurance calculator. It can not only help you understand the impact of add-ons on your premium, but also aid in comparing and selecting the right add-ons as per requirement. Lastly, take advantage of the various benefits of group medical insurance schemes and get the perfect insurance cover for you and your family.
