Everything You Need to Know about the Group Insurance Policy

Group insurance covers a defined group of people such as the members of a professional association, society, or employer Group. This type of insurance offers comprehensive healthcare coverage to the entire group as per the group insurance guidelines sketched by Insurance Regulatory and Development Authority of India (IRDA). There should be at least two members to start a group insurance plan.  In case of more than two members, the group needs to have 75 percent participation from your full time (over 30-hours/week) job. In this blog post, we shall discuss some crucial features of group insurance that should be taken care of before considering any plan.

Importance of a Group Insurance

People find group insurance most sought after health insurance because it does not require them to submit any medical reports before taking its advantage. Also, there is no waiting period and the insured group can get coverage against pre-existing conditions. Another major factor which makes it famous among the masses is its affordable premium. The most common form of group insurance is the one that is offered to employees by their employers.

Working of a Group Insurance

In a group insurance policy, a master policy is issued that offers coverage to every person of the group for which the policy has been taken.  The terms and conditions as well as the inclusions and exclusions, in a group insurance plan, are the same for everybody who belongs to the same group. In today’s era, almost every insurance company in the market offers Group Insurance, but each of them has their own set of rules and the inclusions and exclusions may vary from one insurer to another.

Difference between Group Insurance and Individual Insurance

A group health insurance plan offers healthcare coverage to a group of people while an individual health insurance plan offers coverage to a single person. On the other hand, an individual insurance plan requires every individual to have a separate renewal date while under a group plan, the entire group is accustomed to a single date. We can always customize a group insurance plan but to a certain limit whereas the individual plan has no limits of customization and can cater to the needs of an insured by adding or removing few policies.

Which Way Forward?

Although group insurance seems to be a perfect choice for many individuals as it does not require a great mess and formalities, there are many factors which also make it a matter of a doubt for certain group of people. While group insurance does not pertain to the pre-existing conditions and provides the same coverage to people having pre-conditions, it may be a hassle for those opting for policy discontinuity. Once the insured leaves their job and are no longer associated with the organization, the policy they were enrolled under will automatically come to an end and so will its benefits. Therefore it is recommended to analyse your conditions and priorities and choose the best plan that can give you long term benefits.