Benefits Of Group Health Insurance

Business owners are faced with two options when looking for medical insurance cover for their employees. They can insure employees on an individual basis, or they can have all employees insured under a group health insurance policy. Group health insurance policies are designed for two or more people who share something in common apart from the fact that they need health insurance. In this case for example, the common characteristic is that the group of people to be insured has a common employer. The article below discusses a few reasons why it would be a good idea to consider group health insurance for your employees.

Suitability For Otherwise Un-Insurable Employees

Health insurance service providers often have a criterion for determining who qualifies for insurance and who does not. Un-insurable employees refer to those who fail to meet the requirements outlined in the criteria of qualification. One of the most common requirements is that the person to be insured should not have specific pre-existing medical conditions. This means that some of your employees may not be eligible for individual cover.

Group health insurance is advantageous in the sense that it gives such employees a new lease on life seeing as they are eligible for cover under the same regardless of their pre-existing medical conditions.

Non-Discrimination Policy

Another reason why you should invest in group health insurance is the fact that it does not discriminate against employees on any basis. For example, your oldest and youngest employee can both be covered under the same group insurance policy regardless of their age difference. In this context, the age difference is of great importance because it determines the risk potential of an employee. Older employees are considered to have a greater risk potential and would therefore be required to pay higher premiums with individual cover.

Group health insurance disregards factors such as age and risk potential among others. You will therefore pay equal premiums for all your employees under a group health insurance cover. Investing in group health insurance is a good way to show employees that you value them equally.

Lower Premiums

In conclusion, group health insurance is beneficial in the sense that you will get to save money on insurance premiums. This is because group health insurance premiums are often lower than premiums paid for individual cover.

The fact that there are more members contributing the insurance premiums allows group health insurance companies to lower their premiums without operating at a loss. For more information, contact a company like Ian Hewitt & Associates.

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