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Group Critical Illness Insurances for small businesses

By March 1, 2022April 13th, 2022No Comments

One of the priorities of a small business is making itself more attractive to employees. A sure-shot way to do it is letting the employees avail the facility of a group critical illness insurance policy. Such a provision helps the small business to gain more reputation in the competitive market.

The key types of critical illnesses

The major types of critical illnesses/health conditions according to the IRDAI relevant to be covered by the GMC policy are:

  • Cancer (any category and any stage)
  • Failure of kidney(s)
  • Surgery of Coronary Artery (Bypass)
  • Myocardial infarction i.e. Heart Attack
  • Surgery of the Heart Valve 
  • Multiple Sclerosis 
  • Paralysis
  • Coma
  • Complete Blindness
  • Transplantation of major organs 

There are many group critical illness insurance policies

From a practical viewpoint, there are numerous group critical insurance policies available in the market. As a person who has the responsibility to recommend a policy to the management of the company, you should be aware of the purpose the policy serves.

How does the GMC cover a critical illness?

A simple example will explain the how the GMC functions. Suppose an employee from one of the companies covered under the GMC is detected for blood cancer. The policy covers the hospitalization expenses. Also, it covers expenses for medical tests and treatments, including blood transfusion procedures, if needed. The service fees of the doctors are also covered. 

A couple of examples how the insurance works

Suppose a person from the group insured is diagnosed of cancer. He submits the relevant medical reports to the insurer and applies for claims. The insurance company assesses the reports and provides lump sum benefits to the concerned person. 

Another example is the case of an organ transplant. When the insurer shows medical evidence to the insurer citing an unavoidable situation of transplantation of an organ (e.g. kidney), and applies for the claims, the insurer looks into the matter, and provides the lum sum benefits, accordingly. 

Choosing the right policy

Selecting the most suitable policy is a serious task and you need to consider a wide range of aspects before deciding on it. The policy has several terms and conditions, mentioned clearly in its document. You need to go through each of them, thoroughly.

You may seek advice from a financial expert

It is good to seek some suggestions from an experienced financial expert to better understand the dynamics of the insurance policy. Any such policy has certain technical sides. You should be aware of the relevant details associated to the features of the policy.

Choosing the right seller

It is wise to select an insurer that is renowned in the industry. You can be more confident in buying the policy. You can also consider a reputable insurance broker active in the Indian market. It helps in conveniently exploring a wide range of policies.

Types of critical illnesses it covers

There are many critical illnesses and you should have clear ideas about the ones that the insurance covers. Usually, a group critical insurance plan covers cancer, kidney failures, permanent paralysis, etc. The document of the insurance policy clearly enlists the different types of critical illnesses it covers.

The small business builds more trust 

The employees begin to trust the small business when they find that they are eligible for a group health policy targeting critical illnesses. The provision builds a stronger bond between the company and its employees, which is stable from a long-term perspective.

The employees can become more productive

As the employees already know that they are covered by a beneficial insurance plan, they find it more valid to sincerely work for the company. An observable increase in the productivity level may occur. The employees become more focused in delivering for the company.

The employees become more loyal

Another benefit for the small business is more loyalty from its employees. The employee acquisition rate improves over the years when the company provides a reliable group critical illness insurance policy. The loyalty of the employees plays an important role to establish the small business in the competitive market. 

The plan pays a lump-sum amount

A well-defined feature of the policy is it provides a lump-sum amount of money for the treatment of the person suffering from a critical illness mentioned in the policy document. The concerned individual should be registered as one of the insured group members.

Easy processing of claims

The insured will find it quite easy to process the claims. There is no complication at any stage of processing. The insurer can receive the claims conveniently. There is no wastage of time. A reliable insurer provides the required support to the insured.

Waiting period

The policy has a certain waiting period. Different policies can have different waiting periods depending on the specific service provider. It is wise to be aware of the time before purchasing the insurance plan. The policy document of the insurance has full details of the waiting period.

The small business can get tax benefits

A striking feature of the insurance plan is it may help the small business to avail tax benefits. The relevant terms and conditions of the policy explain about the tax benefits that a company can get when it buys the policy for its employees.

The group may include employees from different age groups

It is important to know about the composition of the group that will be insured. The policy document of the insurance plan particularly mentions the details in this regard. In many cases, it is possible to include persons from different age groups within the safety net of the insurance. 

Consider the renewability factor

It is also essential to check out the renewability of the policy. Again, the document will explain the different terms and conditions related to the renewability of the policy. It is better to talk about it with the insurer.

It is a cost-effective plan

From the perspective of bearing expenses, buying a group insurance policy for critical illnesses is certainly a cost-effective strategy for the small business. Purchasing such insurance for individual employees is an expensive affair. So, it is always better to buy a group insurance policy.

Check out the coverage and premium 

The small business planning to buy the policy must mandatorily check out the total coverage amount of the policy. Also, it is extremely important to check out the premium amount it needs to pay to the insurer. The company should have clear ideas about these things before buying the policy.

Purchase the policy from a certified broker

You can confidently consider PlanCover to buy the insurance policy. It is a certified insurance broker operating in the Indian market, serving several small businesses in various domains. It has lucrative offers for small-sized companies. You will have no shortage of options to flexibly explore.

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