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The Financial Advantages of Group Health Insurance for Small Businesses

Posted on 11 JUN, 2024
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Running a small business is hard. You wear many hats, create projects, and try to win. However, one thing you give little thought to is how providing health insurance can actually benefit your business financially.

Group health insurance plans can be a lifesaver for small groups and start-ups. These plans provide long-term benefits for organisations and their employees.

Goup Medical Insurance

Here, we will explore how investing in group health insurance for a small business can benefit your employees.

 

Cost-effectiveness

A group health insurance plan tends to be more cost-effective for small businesses compared to private healthcare policies. As an employer, you can cover all your employees under one plan instead of paying for individual healthcare policies for each employee. By pooling risk within an organisation, insurers can also offer lower premiums, making health coverage more affordable.

Tax benefits

As an employer, you can enjoy tax incentives for the premiums you pay for the group health insurance plan. These tax incentives can help offset the cost of providing health care. It lowers your overall tax liability, thus providing additional savings for your business.

Employee retention and recruitment

Offering incentives, such as group health insurance, is a powerful tool to attract as well as retain top talent. Thus, employees are more likely to remain with a company that offers comprehensive health coverage. It projects your organisation as an employee-friendly company that takes care of the mental and physical well-being of its workforce.

Additionally, offering this insurance can set your small business apart from competitors who may not offer the same benefits. Hence, it gives you a competitive edge in your recruiting efforts.

Improve employee productivity

Healthy employees are happier, more productive, and take fewer sick leaves, which can directly impact your business. This insurance provides preventive care and wellness programs. A group health insurance policy allows employees to focus on their work without worrying about healthcare costs. Your employees feel valued, and you have a healthy and productive workforce.

No pre-requisites needed

A group health insurance covers all employees from day 1. There is no waiting period involved for pre-existing diseases. There is also no need for any employee to undergo any diagnostic test to receive coverage under this plan.

Build goodwill

A group healthcare plan shows your commitment towards Corporate Social Responsibility and helps create goodwill. In addition, providing health coverage can increase employee morale and loyalty, contributing to the long-term sustainability and success of the business.

Easy manageability

A group healthcare plan covering all employees is easy to manage. This lets you manage costs, as you have to keep track of just a single policy.

Better claim settlement process

The claim settlement process is a significant aspect of a group healthcare plan. There are fewer limitations and exclusions, and the processing is also swifter. Hence, it ensures that employees get the benefit of a hassle-free and quick settlement process.

Investing in your team

By offering health insurance, you send a clear message to your employees: "I value you and your health." This investment in their well-being creates a sense of gratitude. Your employees will feel more secure and supported. This will create a pleasant and positive work environment. After all, a healthy and happy team is the foundation for a thriving business.

Factors to Consider Before Buying a Group Health Insurance Plan

Listed below are some significant factors you must keep in mind before you zero in on a group health insurance plan.

Plan Your Budget: Set aside a budget before you purchase this plan, as it will help you keep track of your finances.

Type of Policy: You must decide whether you want a plan that covers only your employees or a policy that extends coverage to their family members as well.

Scope of Coverage: You must understand the policy’s inclusions and, most importantly, the limitations and exclusions.

Premiums and Tax Benefits: Some organisations pay the entire premium, and the employer enjoys the tax rebate. However, certain companies deduct a portion of the cost from the salaries of their employees. In this case, both you and the employees can avail of the tax benefit. So, take a call on whether you want to pay the entire premium.

Conclusion

Employees worried about healthcare costs can’t focus on work. Individual plans are expensive, especially for businesses. Providing group health insurance for small businesses makes employees feel appreciated. Happy, healthy employees are loyal and productive. When you provide group health insurance, you invest in the well-being of your employees and your business.

  • GHI Insurance
  • Product Code: 4016
  • Product UIN: ICIHLGP21381V052021

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This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (GHI Insurance, 4016 , ICIHLGP21381V052021)