This can be counterintuitive as the foreclosure has caused a cash shortage for these businesses. However, the reality is that employees are much more aware of the high medical expenses that can arise out of the blue. And the cash component of a person working in the SME sector can rarely provide adequate coverage for medical emergencies. As a result, even companies that have survived the pandemic will find it difficult to retain employees who seek greener pastures to have a sense of security. The only way out is to invest in insurance.
Investing in group health insurance goes a long way in ensuring that employees feel secure and cared for in an organization. Employees and their families appreciate the health and financial security of insurance coverage more than ever. This motivates them to perform better and creates a sense of loyalty for the company. But employee retention isn’t the only benefit companies get from it. These advantages are as follows:
- A profitable option thanks to lower premiums: The advantage of group health insurance is that it is purchased in bulk, which makes it less expensive than purchasing individual insurance. It’s easier and more profitable for a business than constantly reimbursing individual medical expenses.
- Fiscal advantages: Group health insurance is 100% deductible, as stated by the Income Tax Service. This means that you get a full tax deduction when you pay for your employee’s health care, because the entire amount you pay as a bonus is recognized as a business expense.
- Availability of easy premium payment options: According to company policy, the employer is free to choose the frequency of premium payment. This can vary from monthly to quarterly to yearly depending on the convenience of the employer.
Save time for HR
SMEs do not have large administration teams capable of handling bureaucratic overhead costs. Businesses can look to technology-driven insurance brokers who offer services like G-Suite or Microsoft Teams integration, or HRMS integration – which can reduce HR overhead.
Group health insurance is a cost effective and quick option over purchasing individual insurance, even so founders and HR managers often find themselves confused between choosing to provide group coverage or letting employees choose options. individual plans and repay. To make that choice easier, here are some options businesses have when looking for coverage:
- Group Mediclaim policy (group medical coverage): This plan is offered to a group of people where the benefits offered are similar to all members of the group. The contract covers the costs of hospitalization and other ancillary costs chosen by the employer or the organization for its employees.
- Individual group accident insurance: This policy refers to a group health insurance plan that provides financial coverage to employees against – injury, accidental death, disability. Accidental death is also covered by this policy.
- Group term life insurance: This is a term insurance policy that provides financial assistance to a company’s employees and their family members. Usually a company takes this to cover the financial loss of its employees and family members in the event of accidental death / injury etc.
- Crown Kavach: In the current scenario, health insurance companies are required to launch this policy to cover the costs of Covid treatment. It offers coverage for COVID-19 treatment for up to 9.5 months against a one-time payment of the sum insured. Under the current circumstances, purchasing Covid coverage for employees is a great way to make them feel safe and taken care of.
- Refills: These are the updates to the insurance policy that are added according to the request of specific clients. These are usually adjusted by an additional premium amount. With the help of supplements, employees can protect other family members who are not covered by company insurance.
Comprehensive group health insurance is the best way for a business to protect its employees. Especially with the ongoing pandemic, it’s important to make sure your team has all the support they need in the event of a health emergency.
(The author is co-founder and CEO of Nova Benefits)
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