Group Insurance Scheme For Employees
Group Insurance Scheme is an Insurance plan that offers coverage to a group of people under the same plan. Here people irrespective of their age, occupation, and gender get the same type of insurance. Additionally, it also offers coverage to the dependents of the insured members such as spouses, parents, and children.
Group Insurance Schemes eliminate the need to buy separate insurance for each member, and organisations can cover their employees under a group insurance plan. In this blog, we will be covering types, features, eligibility criteria, and pricing of group insurance.
Why is Group Insurance Required?
One of the challenging things for the organisation is to build a great team. However, an even more difficult part is to retain them. When employees want to leave the organisation, there are many questions raised about what could have been the problem.
Most of the time it is about the work-life balance of employees, fair pay, and health benefits. A great workplace culture always focuses on human-centric policies. There are various steps to do it, and adopting Group Health Insurance is one of them. This offer doesn’t only protect employees against unexpected situations but also increases employee satisfaction and higher retention rates.
Suggested Read: 6 Essential Financial Wellness Activities for Employees
Features Of Group Insurance
Some of the common features of group Insurance for employees are:
- Group insurance offers financial coverage at affordable premium rates
- Group insurance provides protection to all members under the same plan, irrespective of the number of members.
- Employers get tax benefits for providing insurance
- There are various types of group insurance plans such as group life insurance, health insurance, travel insurance, etc.
- Insured employees can get medical care at network hospitals without making upfront payments.
Benefits of Group Health Insurance for Employers
The advantages of group insurance for employers are:
Employee Retention
Offering group insurance to employees shows care for them, and it increases employee retention rates. When employees feel valued they are more likely to stay in the organisation, which again reduces the turnover.
Tax Benefits
Providing group health insurance to employees who qualify for tax deductions, offering financial benefits to the organisation.
Lower Premiums
Compared to individual insurance plans, group insurance policies are affordable as the premiums are spread over a large number of employees.
Support for Mental Well-being
Recognising the importance of employee wellbeing, many group insurance plans in Singapore include coverage for mental health services. This support can lead to a more engaged and productive workforce, reducing absenteeism and improving overall well-being.
Provide Coverage for Their Families
Group insurance plans often extend coverage to employees' families, ensuring that spouses and children also have access to essential health services. This holistic approach not only benefits the employees but also enhances their sense of security and loyalty to the company.
Protect Employees from Severe Health Issues
Severe health issues can have a devastating financial impact on individuals and their families. Group insurance provides a safety net, ensuring that employees can receive the necessary medical treatment without the burden of exorbitant costs.
Benefits of Group Health Insurance for Employees
Some advantages of group health insurance policy for employees are:
Coverage from Day 1
Employees are eligible for insurance coverage from day one of their enrollment. They don’t have to go through any medical screening.
Preventive Care
This includes health checkups, and vaccinations, and helps the employees detect any disease early, and reduce the risk of serious illness.
Hassle-Free Experience
Group health insurance plans are designed to offer a hassle-free experience for employees. With streamlined administrative processes and minimal paperwork, employees can focus on their health rather than navigating complex insurance procedures.
Wide Network of Hospitals
Group insurance plans typically include access to a wide network of hospitals and healthcare providers. This ensures that employees can receive quality medical care without the inconvenience of finding a covered provider.
Low Cost, More Benefits
Group insurance policies often come with lower premium costs compared to individual plans. Employers can negotiate better rates due to the collective nature of the policy, providing extensive benefits at a reduced cost.
Options to Customise
Employers can tailor group insurance plans to meet the specific needs of their workforce. Customisable options allow companies to choose the coverage that best fits their employees, enhancing satisfaction and utilisation of the benefits.
One-Stop-App
Modern group insurance providers offer digital solutions like one-stop apps, where employees can manage their insurance details, submit claims, and access policy information easily. This technological integration simplifies the entire insurance process.
Less Paperwork
Gone are the days of extensive paperwork. Group insurance plans reduce the administrative burden on employees by digitising processes and minimising the need for physical documents.
Who Should Buy Group Health Insurance?
Young Startups and Small Companies
Even small businesses can benefit from group health insurance. Offering comprehensive health coverage can give startups a competitive edge in attracting and retaining talented employees.
Growing Startups and Medium-Sized Companies
As businesses expand, the need for comprehensive employee benefits becomes more critical. Group health insurance can grow alongside the company, adapting to the changing needs of the workforce.
Established Startups and Large Organisations
For established businesses and large organisations, group health insurance is a strategic investment in employee well-being, contributing to a positive workplace culture and improved employee retention.
How to Choose the Best Group Insurance
Key Considerations for Businesses
Selecting the right group health insurance policy requires careful consideration. Employers should evaluate the plan’s coverage, cost, network of hospitals, and ease of claim processing to ensure it meets the needs of their employees.
Eligibility Criteria
Who Can Purchase Group Insurance?
Eligibility criteria for purchasing group health insurance may vary among insurers, but common factors include the size of the group, type of organisation, and specific requirements set by the insurance provider.
Inclusions & Exclusions
What’s Covered and What’s Not
Group health insurance typically covers hospitalisation, outpatient care, pre and post-hospitalisation expenses, maternity coverage, mental health services, and critical illness coverage. Exclusions may include pre-existing diseases (subject to waiting periods), cosmetic procedures, experimental treatments, self-inflicted injuries, and injuries from hazardous activities.
Types of Group Insurance Schemes for Employees
Here are the types of Group Insurance plans for employees
Group Health Insurance
Group medical insurance covers employees' medical expenses for a fixed sum insured amount. The plan is offered by the organisation, and it also covers the employee’s dependents such as spouse, children and parents.
Group Term-Life Insurance
The group term-life insurance provides coverage to the employees in the event of death, and it’s a single policy that offers coverage to a group of people.
Group Travel Insurance
This insurance offers coverage in case of any loss or damage occurring during travel. An employer can cover a group of employees from unexpected scenarios such as flight delays, loss of baggage, or cancellation.
Group Insurance Pricing
The pricing of the group insurance depends on various factors such as:
- The size of the group can affect the group's insurance premiums. The larger the group the more premium amount will be.
- In the case of some high-risk jobs, the premiums may be on the higher side.
- The claim history of the employer can also affect the group insurance pricing,
- If the buyer adds any add-on then the premium amount will increase as well.
Eligibility Criteria for Group Insurance
The eligibility criteria for buying group insurance should be as follows:
- The minimum age limit to get insured under group insurance is 18 years
- The maximum age limit can vary from 60 to 80 years
- All should be full-time members of the group
Key Features of CHOYS Group Health Insurance
CHOYS offers comprehensive group insurance that promotes financial wellbeing in the workplace. This coverage ensures that your team members are supported during critical times, giving them peace of mind and financial security.
Our commitment to employee wellbeing goes beyond insurance coverage. CHOYS provides an advanced app with a suite of features designed to take care of your employees' health and wellness.
When your organisation purchases our group insurance, CHOYS offers a complimentary one-year premium membership to our employee wellbeing app. This exclusive benefit enhances the value of our group insurance by providing additional resources for maintaining employee health and happiness. We provide comprehensive coverage, and employee wellbeing features easily accessible via the CHOYS app.
Also read:
- Why Financial Wellness is Important in the Workplace?
- Workplace Wellness Programs
- What is Emotional Wellbeing at Work?
FAQs
Q: What is group insurance?
A: Group insurance is a type of insurance policy that provides coverage to a group of people, such as employees of a company, offering various benefits like health, life, and disability insurance.
Q: How does group insurance benefit employees?
A: Group insurance provides comprehensive health coverage, mental well-being support, coverage for families, and protection against severe health issues, enhancing job satisfaction and loyalty.
Q: Why should small businesses consider group health insurance?
A: Small businesses can benefit from group health insurance by attracting and retaining talented employees, and offering competitive benefits that enhance employee satisfaction and loyalty.
Q: What types of coverage are included in group health insurance?
A: Group health insurance typically includes hospitalisation, outpatient care, preventive services, mental health services, and sometimes maternity and critical illness coverage.
Q: Are pre-existing conditions covered under group health insurance?
A: Coverage for pre-existing conditions varies by policy. Some plans may have waiting periods before these conditions are covered, while others may provide immediate coverage.
Q: How can employers choose the best group insurance plan?
A: Employers should consider factors such as coverage options, cost, network of hospitals, claim processing efficiency, and the ability to customise the plan to meet their employees' needs.
Q: What is the difference between group Health Insurance policy and individual health insurance plan?
A: Group health insurance policies are designed to cover a group of individuals, such as employees of a company, offering benefits like lower premiums, coverage from day one, and fewer medical screenings. In contrast, individual health insurance plans cater to single individuals, often requiring medical evaluations and offering higher premiums.
Q: Who can be covered in a group health insurance policy?
A: Typically, group health insurance policies cover employees of a company. Many plans also extend coverage to employees' families, including spouses and children, providing comprehensive protection for the entire household.
Q: Is it possible to issue the policy if there are less than 7 employees?
A: While traditional group health insurance policies often require a minimum number of participants, some insurers may offer policies for smaller groups, including those with fewer than 7 employees. It's best to check with specific insurance providers for their eligibility criteria.
Q: How is the premium of a Group Health Insurance decided?
A: The premium for group health insurance is typically determined by several factors, including the size of the group, the average age of the members, the type of coverage provided, and the claims history of the group. Insurers may also consider the industry type and overall health risk profile of the group members.