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5 Reasons Why Group Medical Insurance is Beneficial for Employees

Team AckoDec 24, 2023

Today’s urban life has become quite hectic. People are constantly on the move. Stress, sedentary lifestyle, and unhealthy eating habits have deteriorated people’s overall health quotient, especially in the metros. With the depleting green cover, rise in infrastructure, and increase in pollution, breathing fresh air has become challenging.


Amidst all this, the rising costs associated with healthcare can be daunting. This makes it all the more important for people to avail health insurance. Fortunately, many corporates have realized the need for a health cover for their employees. Read ahead to understand group health insurance policy in detail.



What is the meaning of Employee Medical Insurance?

Employee medical insurance policy is a group health insurance policy offered by an employer to an employee. Several employees are covered under this group health insurance policy. The risk factor of the entire group is analyzed to arrive at the policy’s health insurance premium. This health insurance premium is paid by the employer. The employers usually provide such a plan to ensure loyalty and improve efficiency of their employees. This plan is applicable to all employees; its terms and conditions, inclusions and exclusions are common to all insured people.

5 Reasons Why Group Medical Insurance is Beneficial for Employees:

Costly Health Plans

Rising healthcare costs have resulted in costly health insurance plans. Not all employees might be able to opt for an individual health insurance plan. In such cases, the plan offered by the insurer acts as a security measure in case of health-related mishaps. One can also opt to purchase an individual health plan in addition to the group medical plan depending upon the extent of cover provided by the employer.

Family Cover

In some cases, the group medical cover’s benefits might also extend to the employee’s immediate family members. Usually, spouse and children are covered under such a policy. Dependent parents might also be covered depending upon the terms and conditions of the policy.

Balancing Own Savings

A group insurance policy acts as a supporting factor in case of creating your own contingency fund. Depending upon your coverage, you can manage how much you want to invest in your fixed deposit or low-risk mutual funds to create your own fund. This way, you will have options to choose which financial security measure to utilize in case of a health issue. This way, you will not exhaust all your health-related financial security measures in meeting one health concern.

Also, Read: 10 Reasons Why Companies Should Offer Employee Health Insurance

Cashless Services

Most of the group health insurance providers have tie-ups with a chain of hospitals. They have an extensive list of network hospitals. What this means is in case of health issues, you can get admitted in one of the network hospital and avail cashless services. You won’t have to pay money from your pocket. The insurer and the hospital shall settle the claim amidst themselves. However, this depends upon the coverage of your policy.

Peace of Mind

The biggest importance of a group medical policy is peace of mind. Not just regarding the coverage but also regarding claim settlement. Some companies offer group policies that can be converted to individual health insurance policies after a predefined number of years.

Also, read: How Many Employees Do You Need to Get Group Health Insurance?

Key Takeaways:

  • Group medical insurance premium is paid by employer for the employee

  • Group health insurance cover might be extended to immediate family members of  the insured

  • Note that such a cover shall be discontinued if the employee leaves the company

  • It is suggested to have an own fund for financial security as well

  • Read the terms and conditions of the group health insurance plan carefully before raising a claim; especially the hospital room rent aspect.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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