5 reasons why your business should consider group insurance policy

5 Reasons Why your Business Need Group Insurance Policy

Health Insurance Insurance

Last Updated on 09/01/2024 by Pardeep Garg

Purchasing a former employer-employee relationship group insurance policy makes good sense for the employer to save on sudden and surprise expenditures on his part in the case of the employee’s health, accident, or even death. It not only safeguards the employee but also saves employers’ funds at an affordable cost.

An Example of Why You Must Go For a Group Insurance Policy

A mid-level employee who has been with the organization for 15 years and whose owners rely on him on many matters. He suddenly suffers a heart attack in the office; he is hospitalized, gets treatment, and his life is saved. The owner pays for the treatment with the understanding the amount will be deducted from the future salary, or the employee, after getting well, will make arrangements to return the money to the owner. 

The whole medical procedure cost is an amount the employee cannot afford. When pressed to pay back, the employee joins and starts looking for another job. He finds one that is better paid and quits on an assurance of paying back to the employer, which never happened. A group insurance policy would have helped both the employer and the employee in the above case.

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5 Reasons to Select a Group Insurance Policy:

Attractive Job Postings

During the recruitment stage, when there is a mention of a group insurance policy and other benefits, the employee or potential candidate feels secure, and the chances of his/her joining improve. In addition, a group insurance policy helps retain the best staff as they feel attached.

Cost and Benefit effects

Group insurance Policy purchase cost is sometimes part of the CTC, and the employer takes the cost in many cases. It covers the employee and his family as per the sum insured. The cost is less than purchasing an individual policy, and the treatment is cashless, including pre and post-hospitalization charges. The affected do not have to pay from their pockets or savings. The employer pays the premium in both cases, and if it is part of CTC, the deductions are made from the monthly or annual salary of the employee. Therefore, the chances of missing the premium deadline or non-payment of the premium are less.

Coverage for pre-existing diseases

In group insurance policies, there is no waiting time for pre-existing diseases in the case of three years in the case of individual policies. Therefore, pre-existing diseases like hypertension, diabetes, etc., are covered from the first day; this positively impacts the employee.

Fast Settlements Claims 

Under the group insurance policies, the claims are settled faster and are hassle-free.

Safeguards to Life Coverage

The senior and well-paid employees of any organization have their own safety, health, accident coverage, etc.; the junior staff or workers most benefit from and are attracted to such benefits. They also happen to be the true faces that spread the word about the work environment and offered benefits the fastest. Here the group insurance policy for them plays a crucial part for them to be assured of being taken care of during the execution of their duties. 


A group insurance policy ensures a positive work culture where there is security for the employee, for him and his family are covered for the uncertainties of life, which provides a better output from his work.