How much does group health insurance cost for a 50-person company?

What drives the premium

Insurers price a group policy on expected claims, not on headcount alone. For a 50-person company the biggest inputs are the age profile of the group, whether dependants are covered, and the room-rent limit you agree to.

Age mix

A team averaging 28 years old and a team averaging 42 can differ by more than 2× on the same cover. This is why two companies of identical size get very different quotes.

Dependants

Coverage tiers usually step up as follows:

• Employee only — the baseline
• Employee + spouse + children — roughly 1.8× the baseline
  • Child age caps commonly sit at 25 years
• Employee + spouse + children + parents — roughly 2.5–3× the baseline

Indicative ranges

These are per employee per year, before GST, and assume no adverse claims history.

Where teams overspend

The most common mistake is treating sum insured as the only dial. A ₹5 lakh policy with a 1% room-rent cap often pays out less in practice than a ₹3 lakh policy with no cap, because the cap proportionally reduces every associated charge on the bill — not just the room.

If you change one thing at renewal, remove the room-rent sub-limit before you raise the sum insured.