Buying health insurance is imperative to secure the cost of medical treatment. The importance of which cannot be emphasized more upon. One can avail uninterrupted medical attention with a health insurance policy. Without proper treatment financed by health insurance, the risks related to the ailment would increase multiple folds.
Business owners secure their employees’ well-being with the help of a group health insurance plan. It provides multiple benefits to the employee and his/her family as well. Also, nowadays exclusions like pre-existing diseases or maternity are covered under these plans. Such extensive coverage is important in terms of increasing the employee’s trust in the company as well as the credibility of the company.
Irrespective of the size of the workforce, buying health insurance for the employee proves to be beneficial. In this article, we will discuss small business health insurance.
Should Small Business Owners Buy Health Insurance?
India’s economy has been growing at an amazing rate. With the help of various programs offered by the government, it has become easier to start a small business. But sustaining in the market can prove to be a challenge. In such a situation, attracting potential employees also becomes difficult. Even after employees are acquired, retaining them is not easy. One way to make your employee willingly stay with the company is to offer useful perks. One such perk could be a health insurance policy offered by small business owners. Health insurance will evoke a sense of security in the employee. Thus, small business health insurance is one of the important factors for having a dedicated workforce.
Health Insurance Tips For Small Business
Here is a list of health insurance tips you can use if you own a small business:
#1 Compare policies
Before choosing a group health insurance coverage for your employees, be sure to compare various similar plans available in the market. You can easily compare the plan while buying online health insurance. Take a look at the features or the health insurance plan, services offered by the insurance company and finally, the price of policies when you buy online health insurance.
Also, read: Startup Health Insurance
#2 Buy sufficient coverage
Since you are buying a group insurance plan for all of your employees, consider buying sufficient coverage that can be used by each of your employees. One of the options is to consider buying a policy with a minimum benefit of around 5 lakh rupees.
#3 Check the list of network hospitals
Since your employees would possibly be residing in different parts of the country, an insurance company with a larger network of hospitals would be beneficial. Thus, take a look at the list of network hospitals. Larger the network, better the chances of your employees facing less hassles during a medical emergency. You can easily check the list while buying online health insurance.
#4 Read the terms of the policy
All Insurance companies have slightly different terms and conditions mentioned in the policy document. Make sure you read through the terms and conditions of your insurer so that your employees don’t face difficulty while availing the cover.
#5 Know the exclusions
Exclusions are situations for which your health insurance company will not accept a claim. Understand the exclusions and make your employees aware of such unclaimable situations.
#6 Check Sub-limits
Sub-limits are limits on various things like room rent, type of bed, etc. If a person exceeds the sub-limit, he/she will have to pay the difference from their pocket. For example, if a sub-limit on daily room rent is Rs. 1500 and the room rented by the policyholder costs Rs. 2000, the difference i.e. Rs. 500 is to be borne by the policyholder. Thus, select a policy with either a higher or no sub-limit.
Also, read: Health Insurance for COVID-19
The Bottom Line
The Insurance Regulatory and Development Authority of India (IRDAI) states that small businesses with a strength of as low as 20 employees can buy a group health insurance plan. However, if your workforce consists of a smaller number of people, you can extend the coverage to their family members and reach a minimum of 20 people to meet the requirements. Remember that health insurance provides financial aid in emergency situations. This benefit will have a positive impact on your employees’ in-turn resulting in a flourished business.
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