What do You Need to Know About Group Medical Insurance?

1. What do You Need to Know About Group Medical Insurance? Are you planning to buy a group of medical insurance? People often make the decision of purchasing this health insurance plan without being completely aware of it. As a consequence, they end up regretting later. Some people are so ignorant that they tend to believe that group health insurance and individual health insurance are the same. If you want to buy this health insurance, then here are some vital pieces of information that you need to know. Group Medical Insurance Vs Individual Medical Insurance As the name itself implies, an individual medical insurance policy is meant for providing coverage to an individual person, whereas a group medical insurance plan is to offer coverage to a group of individuals. The former one is for self and other dependent family members while the latter is for a group of people. In the case of individual health insurance policy, the contract of insurance lies with the policyholder and the insured has the power to cancel the policy. Moreover, the insurance term does not get affected by employment tenure. Also, such policy is based on the age and medical history of an individual and the insurance company takes all risk factors into count. However, when it comes to group medical insurance, the organization or employer is the owner of the contract. The authority to cancel the policy remains with the insurance company. The employment tenure does affect the insurance term as the coverage is provided as long as the person is a part of the organization. Unlike individual medical insurance which is dependent on age and medical history, the group medical insurance reply on the financial health of the organization or the employer. Furthermore, individual health insurance can be completely customized as per an individual’s needs, while group health insurance can be customized only up to a certain limit. So, these are some notable difference between the individual and group medical insurance.

2. Benefits of Group Medical Insurance Here are the advantages of group health insurance Group medical insurance plays a major role in securing the health of employees and their family members. The premium amount of this insurance policy is lower when compared with individual medical insurance, making it the most cost-effective option. You only need to be the part of an insured group or organization to get all the benefits, the claim process of this insurance is quite easy. Group medical insurance helps to ensure employee retention and loyalty towards the organization. This type of health insurance policy also offers the benefits of tax deductions. Group health insurance also provides maternity cover from day 1. Unlike an individual health plan, there is no waiting period to avail all the benefits of this medical plan. There is no requirement of undergoing health check-up and submitting reports to get enrolled in this health insurance plan. Conclusion Thus, if you are planning to invest in the group health insurance, then you must know everything about it to make an informative decision. To choose the right policy, compare medical insurance from various insurance providers.