Let us know about the group health insurance that is provided by employer to the employees, some organization or members clubs or association.
The main aim is to provide a same policy to a group of people. This is intended for a group of employees, members of an organization or clubs or association.
Specialties of group insurance:
Since the policy is taken as a group, the premium is always less than that of an individual policy.
While taking a health policy, you have to undergo medical tests and company may deny a policy if it finds any complex health issues but group insurance have no mandatory heath checkups.
There is no waiting period for preexisting health problems for group policies like individual policies.
The insurance initiates pregnancy insurance immediately after taking a group policy, which is very useful for women. The same has a waiting period of 1 to 2 years for general policies.
The benefits of a group policy keep changing by the choice of owner or proprietor of the company.
Coverage under these policies:
Group health policy pays for medical expenses after hospitalization, doctor fees, ambulance, diagnostic tests, nursing charges, hospital room rent, medicines, anesthesia, surgeries, etc.
High premium can be paid to take policies for critical illness and individual accidents.
The members of the employee family are also covered.
Things to remember:
Generally, employees tend to thing a group policy would suffice. But always analyze the facts like the policy amount, will it be enough. Check if it is enough for the whole family if taken for the family.
Also be aware of the exceptions and limitations.
Insurance stays in vogue only as long as the employment with the company is maintained and family is no longer covered once he exits from the company. Since the employee is obviously older at exiting than at joining, it may become a costlier affair to take a policy at the time of exit from the company.
Generally group health policies have limits and may not be enough if you have kids or elders in the family.
So, keeping all the above in mind, it is prudent to have a comprehensive individual health policy even though you have a group health policy.
There is exemption up to 1.5 lakhs for premiums paid under health policy under section 80C