Understanding what first-time buyers need to know about Group Health Insurance

As the world faces growing concerns over health risks and the fear of the rising cost of treatment increases, choosing the right health insurance plan can be the difference between peace of mind and financial loss.

Whether due to the criticality of purchasing a policy, dozens of insurers vying for your attention or the anxiety of choosing the wrong policy and being denied your claim, first-time health insurance buyers are often daunted by the purchase process.

Although that is the case for people purchasing policies for themselves, this is further exacerbated when buying policies for your employees.

But don’t worry. By referring to this article, you will understand everything you need to know when buying group health insurance for the first time.

What is group health insurance?

A group health insurance plan is an extension of health insurance specially designed to cover the needs of a group of individuals. Typically, a group is a collection of individuals getting together for a common objective. Thus, although group plans are usually opted for by professional organisations, they can also be purchased by associations or other groups.

These policies are similar to regular health insurance offered to individuals and families; however, they are highly customisable based on the group’s specific needs. Also, there are several great features that might not be available in individual plans, such as pre-existing disease coverage, coverage for dependents, maternity coverage, etc.

There are also benefits like employer-sponsored premiums and no pre-policy checks for employees, cost-effective premium prices, tax benefits, and better talent attraction and retention for the employer.

Why are group health insurance plans essential?

With growing health risks and rising cost of treatment, the government, anticipating such problems following the COVID-19 pandemic, has mandated all professional organisations to provide health insurance to their employees. This is where group insurance plans present their convenience and cost-effectiveness in making the policies a lot more preferable for organisations in the first place, offering tax benefits and leading to talent attraction and retention.

What are some things to consider when buying medical group insurance?

Whenever purchasing an insurance policy, there are several important factors to consider; here are a few of the most important ones:

Type of Coverage

Individuals purchasing the policy must first understand whether they want to offer comprehensive medical coverage or just a basic policy with limited coverage.

Coverage Options

The decision-makers need to understand the employees’ needs and determine the essential coverages required in the policy—for example, pre-existing disease coverage.

Sum Insured

While a lower sum insured is the way to save money, consider the needs of the employees and current industry trends before choosing one.

Finances of the Organisation

Considering the organisation’s finances before choosing a particular policy is vital. Although it is recommended never to purchase the cheapest policy, it is also unrealistic and unsustainable to buy a policy that is too expensive for the organisation.

Waiting Period

Waiting periods are a set duration for which a covered individual needs to wait before being able to claim a settlement. Having a smaller waiting period is crucial as emergencies wait for no one.

Claim Settlement Ratio

Consider the insurer’s claim settlement ratio before choosing your policy’s insurance provider.


By considering the above-stated factors and consulting with your employees, you can choose the best policy for your group’s needs and reduce the impact of this global shift. Not only is getting the right group policy beneficial to your employees, but it is also, directly and indirectly, valuable to the organisation in terms of creating a safe and productive working environment, attracting better talent, being in line with the government mandate, and offering tax benefits to the organisation.

So get the right group policy today by considering the above factors and secure the financial and medical well-being of the lifeblood of your organisation, “your employees”.

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