CORPORATE HEALTH INSURANCE FEATURES TYPES AND BENEFITS

Corporate health insurance is coverage provided by organizations, small and large, to meet the medical needs of their employees as well as their families. It is a group insurance plan to cover employees working for a company. Organizations generally opt for a pre-designed plan or can also customize the policy as per their requirements. Unlike individual health insurance plans, corporate health insurance is an affordable option especially for companies to cover their employees altogether. Also,employers are also eligible for tax deductions for the premium paid under corporate health insurance.

Employers extend health benefits to employees, in the form of corporate health insurance in order to manage and balance the productivity, engagement as well as health of their employees.Corporate health insurance provides flexibility to employees, in order to provide them with financial and medical security. Organizations invest in corporate health plans for employees as they care about their general well-being and healthy future.

Features and Types of Corporate Health Insurance

Although corporate health insurance plan cover can vary from insurer to insurer, there are general expenses that are covered under every corporate health insurance plan. Let’s take a look at the features of corporate health insurance.

Corporate health insurance provides coverage that includes;

• Added health coverage
• Pre-existing condition
• Critical illness coverage
• Maternity
• In-patient hospitalization services
• Pre and post hospitalization costs
• Ambulance charges in case of emergency
• Domiciliary hospitalization treatment
• Day-care expenses

There are certain exclusions to corporate health insurance as well. The corporate health insurance plans generally exclude certain costs. These include;

• Pre and Post-natal expenses
• Hospitalization without recommendation of health expert
• COVID treatment for single cover only

How Does Corporate Health Insurance Work?

Corporate health insurance is chosen by organizations as they are usually less expensive than individual plans. Corporate health insurance plans include your parents, spouse, and children. Typically, it provides a fixed sum insured amount that covers the cost of hospitalization as well as the medical treatment. Generally, to increase your sum insured amount you would need to pay an additional premium and a corporate health insurance policy gets discontinued once you are terminated from that workplace or organization. So, it is only applicable for employees who still work for the organization that provides corporate health insurance.

Factors to be considered before purchasing group health insurance;

• Quick accessibility
• Effective claims experience
• Settlement ratio
• Service benefits
• Customizable plans
• Lower premiums
• Extensive coverages

Importance of Corporate Health Insurance

An insurance company generally opts for health insurance plans to cover their employees with group health insurance, the premium of which is usually paid out by the respective company itself, and the benefits are offered to employees as a healthcare benefit. Since a corporate health insurance plan would be taken for all employees under a company, the basic plan and sum insured too would be the same for all employees. However, there is also an option to add dependents such as their spouse and children and, in some cases, senior parents too only for an additional premium payout.

Importance of Corporate Health Insurance Includes;

• Security of employee
• Employee Loyalty
• Potential employee Attraction
• Existing employee Retention
• Employee Productivity
• Job satisfaction of employee
• Employee motivation
• Enhanced employee well-being

Benefits of Corporate Health Insurance

Looking at the feature, functioning, and importance of corporate health insurance let’s look at the benefits of corporate health insurance;

Advantages of Corporate Insurance for Employers;

• Low-cost premiums
• Tax benefits
• Attract new talent
• Retain top employees
• Company goodwill
• Meaningful gains

Advantages of Corporate Insurance for Employees;

• Quick and easy claims process
• Waived off waiting periods
• Coverage at zero cost
• No pre-medical tests

Conclusion

After having a clear understanding on how corporate health insurance works, if you have access to a good corporate health insurance plan as an employee of a company then you must take advantage of it. However, corporate health insurance can also have limitations depending on the coverage your employer provides so make sure you add an individual plan for self and family to make your health coverage more extensive.

FAQs - Frequently Asked Questions

Let's take a look at some frequent queries on corporate health insurance;

Q1. Generally, who should buy corporate health insurance?

Usually, organizations with ten or more members protect their employees with corporate health insurance coverage.

Q2. Are family members also covered under corporate health insurance?

Corporate health insurance includes employees along with their family, children and parents.

Q3. Can corporate health insurance policy be transferred from one insurer to another without losing the benefits?

Yes, corporate health insurance policy can be transferred from one insurer to another at the time of renewal of the policy for next tenure.

Q4. How is the calculation of corporate health insurance done?

A corporate health insurance premium is calculated on the basis of factors such as number of employees in the organization, the age group of employees in the organization, location and number of their dependent relatives as part of the coverage within the respective corporate health insurance plan.

Q5. Are there any waiting periods in corporate health insurance?

Yes, corporate health insurance has waiting periods as well. However, unlike an individual health insurance plan has several waiting periods for distinct reasons and diseases. One of the biggest benefits of having a corporate health insurance plan is that their waiting periods can be waived off.