The Pros and Cons of Group Health Insurance Policy

• Posted by Aditya Sehgal September 3, 2018 - Filed in Health - #Group Health Insurance  #Employee Health Insurance  - 387 views

  You can’t predict what will happen to your health the next moment. Thus, it is better to stay prepared for anything after availing a health insurance policy.

  When you subscribe to a health insurance policy, you can easily pass the financial burden of the expenses such as hospitalization, medicines and more on the service provider.

  Like this, you end up saving your savings and other income that you would have used for paying the hospital bills. In the same context, if you are a working professional, you can avail the benefit of the group health insurance policy.

  

  A group health insurance policy is a scheme provided by your employer to all employees. This post will discuss the pros and cons of the group health insurance. Let’s have a look!

  Group health insurance policy pros

  • They are subsidized by the employers – Averagely, an employer is bound to contribute at least 50% of the premium for the employee. Hence, you can grab the benefits of the policy by paying lower premiums than you pay for the traditional policy.

  • Group health premiums are the same for all sizes of the family – Be it a small or a large family, you can strike a better deal by adding them to your company plan. This is not the case when you add so many members of your family and pay a lower premium.

  • Group health insurance is guaranteed – Just because you have some pre-existing conditions, no one can turn you or your family member for availing the policy benefits. It is a great thing as you can use the policy’s benefits for anyone in your family with some pre-existing diseases. Normally, there is a waiting period in the traditional health insurance policy.

  Group health insurance policy cons

  • They are more expensive than individual plans – if you keep away the employer’s contribution towards the premiums in group policies, then individual schemes are always affordable. However, not all can qualify for an individual plan.

  • What will happen if your employment is terminated? – When you no longer continue in your same job, then it may be expensive to continue with the benefits of the plan. You will then need to get another job with benefits, or individual plan or join a Government sponsored plan than staying uninsured.

  • The premiums of the group health insurance are rising – Since the beneficiaries of a group health insurance policy are ‘welcome’ with or without pre-existing conditions and since service providers have more risk, they charge more premiums. As you read this, the numbers of group health insurance policy are up and so is the charges of the premium. Thus, if you are an employer who needs to subscribe your employees to the health insurance, you will need to cough up more money towards the premiums. Needless to say, the employee contribution will also go up.

  The Bottom Line

  You are now aware of the advantages and disadvantages of the group health insurance policy and how it may affect you.

  Sometimes, opting for a group health insurance may not be useful for you and vice-versa, it all depends on the needs and affordability of the insurer.

  Thus, before picking any kind of a health insurance policy, it is always advisable to research about it in depth and then only make a decision. No matter what, at the end of the day, it is good to get a health insurance than not having one.

  If you are confused, you can always consult a known financial expert to help you out!