Group Insurance Getting Popular these Days!

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Group Insurance Getting Popular these Days!

• A group insurance Policy offers certain class of
  individuals the benefit of standard Health
  Insurance Coverage at very competitive rates.
  Majority of the group insurance schemes available
  on the market pertain to the employer- employee
  group. However, the guidelines of group insurance
  are not just limited to an employer-employee
  group, but it can extend to a group where there
  are common interests. Such groups may include
  employee welfare associations, holders of credit
  card issued by a specific company, borrowers of a
  bank besides professional associations or
  societies may also be considered as a group.

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• There are several benefits that a group plan
  offers as compared to individual health plans and
  hence they are gaining in popularity these days.

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1. Lower Cost

• The cost of covering an individual within a group
  through a group insurance cover can be about 30
  less than individual health covers. The low cost
  does not mean the health care Coverage is
  compromised rather insurance companies offer the
  discount as they are more than happy to pass on
  the savings they make in marketing and
  administration expense.

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2. No Medical Check Ups

• When taking a group health cover an individual
  does not have to go through medical check ups to
  qualify for the policy. Since the insurance
  company gets a pool of people under the insurance
  cover any individual specific Risk is hedged by
  diversity of the population covered under the
  insurance policy.

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3. No Waiting Periods

• An individual Health Insurance Policy has several
  waiting periods for specified reasons and
  diseases. But with a group insurance Policy you
  can get a fuller Coverage for your needs. Group
  insurance policies generally would have a Waiver
  on these waiting periods. To get a handle on how
  valuable the benefit is let us look at the
  various waiting periods that individuals have to
  accept when they buy a Health Insurance policy.

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30- Days Waiting Period In order to ensure that
people are not buying a Health Insurance Policy
to get an immediately pending Hospitalization
expense covered, insurance companies have a
30-day Waiting Period before a Claim can be
filed. In case of group insurance policy, such a
Waiting Period can be done away with. Waiting
period for Pre-existing disease Likewise,
individual Health Insurance policies have a 3 to
4 year Waiting Period before which they allow
Reimbursement of health Claim for expenses
related to some Pre-existing diseases. This
however, may be waived off in a group insurance
policy.
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2 year Waiting Period Apart from Pre-existing
diseases, insurance companies also disallow
Coverage of pre-specified illnesses or surgeries
for a period of up to 2 years which as well can
be waived off in a group insurance plan Thus,
by virtue of some very obvious benefits that
group insurance Policy offers they are getting
increasingly popular. Employers and companies
find these an effective tool to enhance employee
and customer satisfaction and thus enhance their
own business prospects in turn.