You may have purchased insurance to protect your business in the event of a calamity. But what about protecting your employees? They are your assets, and when they are happy, their productivity goes up, and your business does well. Employee happiness depends on the benefits the company provides them.
One of the benefits that companies can provide their employees is group insurance. The benefits offered to your employees depend on the type of group insurance. Group life insurance schemes pay the family of the deceased a lump sum amount on the death of the employee.
Group health insurance covers employees during accidental hospitalization, maternity expenses, COVID insurance, and more. Group personal accident insurance protects employees in case of unfortunate events like death or permanent disablement.
But shop owners and proprietors can also benefit from group insurance schemes. Here are some key advantages of investing in group insurance:
7 Best Benefits of Group Health Insurance For Your Business
1. Customised plans
Group insurance schemes will depend on the size of your business and the number of employees. The insurance cover and the premium payable will be calculated, providing you comprehensive cover including life, health, and personal accident insurance.
It's also easier to apply for group insurance online. There are no medical tests required, documentation is minimal, and the policy is issued instantly. Most importantly, unlike individual health insurance policies, pre-existing diseases of your employees are covered from day 1 by some insurers in the case of standard and advanced group insurance plans.
2. Employee retention
It's easier for you to retain employees when you offer group insurance schemes. Choosing a comprehensive insurance plan for your workforce shows them that you advocate for their health and well-being.
Since insurance provides employees with financial security, they are less likely to leave your company. With experienced employees, you will enjoy higher revenues and satisfied customers.
3. Easy to maintain
Having group insurance schemes makes it easier to maintain records. You don't need to maintain multiple insurance policies for each employee. As an added advantage, renewing a group insurance plan is easy since all the different policies under the group get processed as a single policy.
4. Lower costs
Since group insurance schemes cover more than one employee, the premium is lower than individual policies by about 50%. The reason is that the risk is spread over a larger group. Regardless, it helps to do your homework and scan the market for the best insurance plans available online.
5. Statutory compliance
The pandemic has made it necessary for commercial establishments to follow COVID protocol and make medical insurance mandatory for workers.
The insurance regulatory body, IRDAI, has developed a group insurance scheme known as the Group Corona Kavach Policy. It has the same benefits as the individual policy and saves you the trouble of paying penalties for non-compliance with statutory regulations.
6. Tax benefits
The premium you pay for the group insurance schemes can be claimed under Section 37 of the Income Tax Act. Group insurance is considered an employee benefit and is exempt from tax.
7. Faster claim settlement
There are dedicated departments for group insurance schemes, so the claim settlement process is faster. As multiple policies are not involved, you don't have to worry about waiting for months for settlement.
Group insurance schemes offer multiple benefits for both you and your employees. You can go online and choose from group insurance options offered by different insurers by comparing their premiums and features.
Read the terms and conditions of the policy before you buy it. Find out the claim settlement ratio of the insurer before making your decision. For more insights on how to leverage group health insurance as a business, visit Onthewaymoney.com today.