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Types of group health insurance

This is one of the common questions we answer especially when it is a first-time policy buyer.  There are 3 types of policies in group health insurance. They are,

Employee-only policy

In this, the employer only covers the employee and no involvement of the employee’s family.

Employee, spouse and children policy

In this case, the employer covers the employee, their spouse and their two children are covered. Anything more than two children, if added to the policy naturally increases the cost of the policy. With new laws coming into the picture by the Indian Government, the definition of spouse is now changing to the term partner. There are a lot of companies that are friendly toward the LGBT community and want to provide insurance to their partner, which can also be included in this policy.

Employee, spouse, children, parents policy

In this case, the employer covers the employee, their spouse, children and two parents or in-laws. The employee can choose between in-laws and parents.

Why include parents in your group health insurance in 2022?

Most companies these days are employing millennials as a part of their workforce. When a bigger chunk of your workforce is millennials who aren’t married, then the best policy to opt for is the employee and parents policy. With the onset of the Covid-19 pandemic, the upcoming generation has started considering health benefits as an essential element along with their career growth. As a result, from the employee perspective, they are more likely to consider joining a company providing a comprehensive group mediclaim insurance policy for employees.

Here are some facts about why you should consider adding parents to your GHI policy.

Competitive environment

The job market today is very competitive. To stay on top of your talent acquisition and employer branding, providing a group health insurance policy to employees and their parents will be a deal-breaker for candidates.

Susceptibility to diseases

Parents are more susceptible to diseases or already have some pre-existing diseases. Owing to an emotional point of view, it is more likely for employees to prefer a sustainable and promising plan that covers their parents too.

Susceptibility to diseases

Yes, employee benefits are not the sole contributor to the retention of employees. However, it is one of the significant ways to reduce attrition when clubbed with a good organizational culture.

Low cost in comparison to a retail Policy

Getting fresh insurance for parents will be very costly as premiums increase with age. GHI is the best bet as the premiums are much lesser comparatively and pre-existing diseases are covered, unlike retail policy. With GHI, the risk is spread across all lives and hence you can get the best pricing.

What if you can't afford?

The inclusion of parents increases the premium to be paid by the company. If you have a tighter budget and can’t afford the employees + parents policy, there are two ways around it.

Super top-up

Pazcare provides an option called super top-up where the employees can choose to include their parents by contributing a minimal sum from their side. Using super top-up, employees can increase the overall coverage and also include more members (like parents, spouses or children). This needs no intervention or money from the company’s side

Co-pay

GHI policies are very flexible and the company can decide if they want to opt for copay for including parents. Copay is an approach where the company and employee split the premium or claim amount. It can be 50-50 or 40-60 or anything that the company decides.

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