Why Startups and SME Businesses Should Buy Group Health Insurance

  • postauthorRaj
  • postdateMarch 2, 2023
  • postreadtime5 min read
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Table of Contents

  1. Affordable Employee Healthcare; Group Health Insurance Premium
  2. Why Companies Must Opt For Group Health Insurance?
  3. What are the benefit for Group Health Insurance For Employees?
  4. What you should know before buying a group health plan?
Affordable Employee Healthcare; Group Health Insurance Premium

Group health insurance is an essential investment for startups and small businesses. It offers several benefits to the employees and the employer, making it a worthwhile investment. Moreover, group health insurance is an effective tool for affordable employee healthcare because it comes at a reasonable premium. Here’s why you should consider purchasing group health insurance for your business.

Group health insurance for employees helps companies attract and retain talent and gives a sense of security to employees and their families. Group health insurance also helps employers manage their healthcare costs and ensures that they provide quality care to their employees. It gives employers the ability to customize healthcare plans to meet the unique needs of their organization. Buying group health insurance can also provide tax benefits to employers making the proposition even more attractive.


  1. Helps retain top talent: Comprehensive health insurance can be a deciding factor for job seekers when they are choosing different employers. It shows that the company cares about its employees’ health and wellness. This can, in turn, boost morale and help retain top-performing employees.
  2. Increases productivity: When employees have access to comprehensive health insurance, they are more likely to stay healthy and less likely to take leaves because of illness. As a result, their productivity goes up considerably.
  3. Cost-effective: Group health insurance plans are much cheaper than individual health plans. This is because the insurance company can spread risk across a larger group of people, lowering the overall cost of insurance for the group. By buying group insurance, startups and small businesses can offer their employees full coverage at a perfectly affordable price.
  4. Flexible benefits: Group health insurance plans can be customized to fit the needs of the business and its employees. This could include OPD cover, parental coverage, health checkups, doctor teleconsultations etc., based on the employer’s budget and requirements.
  5. Tax advantage: The cost of group health insurance can be deducted from an employer’s taxable income. This helps companies save on taxes, making group health insurance a good investment.
  6. Legal compliance: Many countries mandate employers to provide their workforce with health insurance. By buying group health insurance, companies can ensure that they are following these laws and don’t attract unwarranted paneities.
  7. Helps increase morale: When employees have access to health insurance benefits, they are more likely to feel valued and feel happy at work. This can give a boost to employee morale and make them feel good about their job in general.

Group health insurance also helps companies manage their money better. By setting a budget for health insurance costs, companies can better plan their finances and avoid extra costs that come up unexpectedly should employees fall sick.

This can help keep health insurance cost for small companies in check, even when times are uncertain. Moreover, certain group health insurance plans often offer additional benefits such as wellness programs, preventive care options, and health screenings. These programs can help employees keep their health in good shape and prevent health issues from getting worse which could result in hospitalizations.

Group health plans can also give you access to a wider network of doctors, hospitals, as well as specialists. This gives employees more options for their healthcare needs and enables them to get the best care possible.

When it comes to buying health insurance for a group, there are different insurance companies, types of coverage, and levels of coverage that companies can choose from. It’s important to work with an established insurance partner to understand the options and make a decision that meets the needs of the company and its employees.

What are the benefit for Group Health Insurance For Employees?

Here’s how a good group health insurance plan can benefit your employees.

  1. No health checkups are required before getting covered
  2. Dependents like spouse, children, parents, or in-laws can be covered from the first day.
  3. Maternity cover for women employees.
  4. Employees can spend less on personal health insurance.
  5. Complete and holistic coverage from day 1.
  6. Access to health and wellness programs.
  7. A large network of hospitals to choose from.
  8. Upon moving on from the employer, employees can choose to convert the group cover into a retail plan.
  9. You can use a website or a mobile app of the insurance provider to avail services.


  1. Claim settlement ratio: This is the percentage of the total number of claims paid out by an insurance company out of the total number of claims it receives. This ratio shows how promptly an insurance company settles claims. Go with a provider that has a high claims settlement ratio.
  2. Strength of Network Hospitals: Insurance providers tie-up with hospitals where policyholders can avail treatment without paying cash. These hospitals are called “network hospitals.” The more hospitals in the network, the more likely it is that your employee will be close to a hospital that takes in cashless claims.

3: Ease of settlement: Ease of claim settlement process is an important aspect to consider. Going with a provider that has a seamless digital claims process ensures that your employees are at ease when a claim arises, especially at a time when they are reeling under the stress of hospitalization.

Group health insurance is a critical investment for new and small businesses because it benefits both the company and its employees in several ways. Remember that as an employer when you offer a complete health and wellness plan, you can find and retain the best employees comfortably while also boosting productivity and morale.

Unlock access to comprehensive health insurance coverage with Onsurity! Our selection of plans lets you make a choice based on your budget and needs. Take the plunge as we guarantee the best quality care for your team.

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