5 Things You Did Not Know About Group Health Insurance

Insurance is your life-saving boat on most days. Most of us are literally and metaphorically in the same boat. How?

We are all literally and metaphorically in the same boat.

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Most of us have grown up with a security blanket around us and our parents led by example as they saved pennies to secure a safer future. Insurance, they taught us, is a life-saving boat. It is usually their first choice of investment, especially in those days when they were hard-pressed to look after themselves and their family.

Cut to our corporate life, and we are signing through the barrage of documents including life insurance, health insurance policies, and what not. Having a trusted one-stop financial advisor or a consultant goes a long way toward having that new financial security blanket around us. And Kuvera provides sound advice on everything from fund selection, tax optimization to choosing the right insurance policy in a transparent and unbiased way.

Most modern workplaces offer myriad protections and financial perks to their employees and families including health benefits. In this article, we look at what is group life insurance and how is it different from the “regular” life insurance policies?

#1 We Are All In The Same Life Boat

Group Insurance as the name suggests provides coverage to a group of members, usually comprised of company employees or members of a family. The organization may tailor a plan or select a pre-planned insurance policy from an insurance company under the umbrella of which every employee falls.

Individual health insurance is usually the coverage one buys for themselves.

#2 Affordability

Group health members usually receive insurance at a reduced cost because the insurer’s risk is spread across a group of policyholders. This ensures that there are relatively reasonable premiums to be paid in comparison to the heavy premium amounts that one must shell out while opting for individual life insurance policies.

#3 Application

The employer-provided group health policies continue to apply for only as long as you are employed by or associated with the company. The policy ceases to exist when one is not employed with that organisation. One may always have the option to convert it into an individual plan, but the premium to be paid would be higher.

An individual insurance plan stays applicable as long as the said individual is paying the premium.

#4 Choices and control

In the case of group plans, your employer, or the organisation chooses a plan that works best for the group as a whole.

This means the employee can not pick and choose the terms, features and benefits individually. If you are buying an individual package, you have complete flexibility to set the terms. You can choose what options to take, what to avoid, and when to discontinue.

#5 No Claim Bonus

In the conventional employer-provided group policy, one does not get the benefit of “no claim” – when you don’t make any claim during the tenure. With individual health policies, not claiming gives you the added bonus, which is usually a discount on the applicable premium for renewal.

The last two years have imparted multiple lessons. A central message remained that we are all literally and metaphorically in the same boat and to remain afloat, we must opt for a group life insurance that provides an additional layer of security to our loved ones as well.

Kuvera offers a group health insurance plan designed exclusively for its users. This policy gives Kuvera users the best of both, affordable insurance that also provides comprehensive cover for the family.