The costs of quality healthcare treatment have been continuously rising. Once you are hospitalized, the medical bills are enough to drain years of your savings. A health insurance policy comes in pretty handy in such circumstances.
Not only does it reduce the financial burden on your pockets, but it also ensures that quality medical treatment is available for you or your family members whenever you need it.
This article discusses the lesser-known convalescence benefit in group health policy. But, let’s start by understanding group health insurance and its benefits.
What is Group Health Insurance?
The most important assets of a company are its healthy and dedicated employees. If your employees are secure about their and their family’s health, they can stay focused on the work.
You can achieve this by purchasing group health insurance for your employees. They can be assured of quality healthcare facilities in case of emergencies. The group health insurance takes care of all the major expenses of hospitalization and treatment. With the cashless facilities, a group insurance policy can help you save a lot of time and effort.
Why Should You Buy Group Health Insurance?
- Lower Cost due to Bulk:
The insurance premium for a bulk policy is much less compared to single insurance. This is because the bulk gives you an edge to bargain with your insurer.
- Employees Feel Secure and Valued:
If you purchase a group insurance policy for your employees, they will feel secure about their medical requirements, as they do not have to pay heavy medical bills. Also, when the company pays for the health of its employees, it makes them feel valued.
- Your Company is Saved from Huge Losses:
If one of your employees leaves the organization due to bad health, sharing his burden with other employees can cause heavy losses. Also, you need to find and hire another competent candidate for the job, who might not be as skillful or experienced. Hence, the availability of quality healthcare can reduce the risk of losses to your company.
- Build Trust in Your Organization:
Caring for your employees and their families is a kind gesture towards them. This can help you build employees’ trust in your organization. It can add to their productivity.
- More Policy Advantages:
Comprehensive coverage can be included in the policy irrespective of whether any of the employees have some health ailments. Hence, it provides improved advantages to all the employees and their families.
- Income Tax Benefits:
The insurance paid by you for group insurance is allowed as a deduction from the taxable income of your company.
Lesser-Known Benefits of Health Insurance
Although basic medical coverage is known to most, there are some lesser-known benefits of buying health insurance. Here is the list of such benefits:
- Convalescence Benefit: The amount paid if you are hospitalized for a prolonged period
- No-Claim Bonus: You receive a bonus in the form of a reduction in premium or increase in insurance amount every year when you do not claim any amount for your treatment.
- Regular Medical Checkups for Free: Depending on the policy terms, your insurer provides 1 or 2 free medical checkups every year for you and your family.
- Daily Cash: For your day-to-day expenses during hospitalization, the insurer provides a daily cash allowance during this period.
Let us now take a detailed look at the convalescence benefit.
Convalescence Benefit in Group Health Policy
A convalescence benefit is a lump sum amount payable by the insurer in case you are hospitalized for a prolonged period. It is also known as the recuperation benefit. This amount is payable in addition to the treatment costs. Confused? Let’s try to understand this with the help of an example.
Suppose, your policy states that you will get a lump sum amount of Rs. 20,000 if you are hospitalized for more than 10 days. Then, irrespective of anything else, this amount will be paid by the insurer only when you are hospitalized beyond 10 days.
What is the Purpose of Convalescence Benefit?
The convalescence benefit might be allowed by your insurer for any of the following reasons:
- Loss of Income:
If you are hospitalized for a prolonged duration, then you might end up losing your salary. To compensate for this loss, your insurer can pay the convalescence benefit.
- To Meet the Medical Expenses:
Not all expenses related to your hospitalization are covered by the group insurance policy. To reduce the burden of additional expenses, your insurer can provide a convalescence benefit to you.
- Traveling Expenses for Condolence Visitors:
Your insurer might also provide the traveling expenses for your relatives who stay away and want to pay condolence visits to you.
How Can You Claim Convalescence Benefit?
You need to meet the following conditions to be eligible for convalescence benefits:
- Included in the Policy:
The convalescence benefit must be included as an allowed benefit in the terms and conditions of your policy.
- Purchase as an Add-On:
If the convalescence benefit is not available in the policy, you can buy it as an add-on benefit against payment of an additional premium.
- Hospitalization Exceeds Pre-determined Days:
You can claim the convalescence benefit for the aforementioned purposes only when your hospitalization exceeds the number of days mentioned in the policy document.
There are numerous benefits of buying a group health insurance policy for your organization including good employee health and enhanced trust in the organization.
Plum Insurance is a website that provides direct quotes from insurers, thus saving the money charged by insurance brokers. Check Plum Group Health Insurance to get quotes and choose the best group medical health insurance for your employees.