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Selecting Health Insurance For Business Owners
Feb 17, 2022

How Should Business Owners Go About Choosing a Health Insurance Cover?

Running a successful business involves different challenges. These include increasing the sales numbers to ensure that such a venture remains viable by means of adequate profits. While profit is the ultimate goal for most business owners, the resources applied to earn such profits are critical. The resources can be in the form of plants and machinery, raw materials, and more. To add to the list is another crucial asset, the human resource. The employees of an organization are the building blocks and ignoring them will not help in achieving the organizational objectives. Thus, many businesses provide a group insurance plan to their employees. A group insurance policy ensures the protection of the health of its employees by providing financial coverage for the soaring treatment costs. To combat these rising medical expenses, health insurance in India is a must-have cover. Group insurance plans help provide the necessary coverage. So, if you are a business owner, ensuring protection for the health of your employees ensures lower attrition rate, higher employee morale, increased employee loyalty, increased job security and many such benefits. Here are some nifty ways on how you, as a business owner, can select a health insurance policy for your employees.

Research and comparison of health insurance plans

As a business owner, before zeroing down to the choice of insurance coverage, it is essential that you research and compare the different available plans in the market. Health insurance industry has myriad plans that offer varying features at different price points. Hence, it is essential to undertake a thorough research of the insurance policy. This can be understanding the coverage of the plan, deductibles and co-pay terms in the policy, inclusions and exclusions of scope and lastly, impact of all these factors on the premium amount.

Sufficiency of the coverage

Once you have shortlisted a few policies based on the above research and comparison, it is essential to check for the sufficiency of a health insurance plan. Group insurance plans can be bought for different amounts of coverage, wherein a policy of ₹3 lakhs to ₹4 lakhs is the average sum assured by most organisations, while a higher sum assured is also available. You must remember to ensure that whatever amount of coverage you buy, it must be sufficient to cover treatment costs.

Consideration for dependents of the employees

Buying a plan that includes coverage for the dependents of the employees, be it children, spouse or even parents, is important. This way, unexpected medical exigencies that your employee may be required to fund are covered by the policy.

Keep in mind the average age group

Before finalizing on a group policy, make sure to account for the average age of your employees. This way, you can get an idea about the type of ailments most affecting the specific age group and purchase an insurance cover accordingly. For instance, an organization with older employees may require frequent hospital visits and hence a higher sum insured could benefit them. On the contrary, for younger employees, you may not need to opt for a high sum assured.

Financial implication to your business

While other factors are essential to keep in mind, do not ignore the cost of health coverage completely. The coverage of the policy, the number of dependents covered, the sum assured, and similar factors decide the premium of your master group insurance cover. So, make sure it is financially viable while balancing the coverage for your employees. You can compute the premium amount with the help of a nifty tool called health insurance premium calculator. With these pointers, buying a health insurance for business owners can be easy. While doing so, make sure to get yourself covered with such an insurance plan to extend the scope of your personal health coverage. Lastly, familiarise your employees with what is health insurance and how it benefits them to ensure they take full advantage of the group insurance coverage. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.  

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