Are Group Health Policies Tax Finding?

A group health insurance policy is often an excellent choice for employers for the purpose of tax evasion. Then again, there are certain circumstances where that is not the case.

A Group Health Insurance policy is purchased by the employer and the employees of the company are eligible to avail the benefits. In many cases, these group policies also cover the family of the employees too.  By offering a group insurance plan, the employers create a positive and reliable working atmosphere while retaining the loyalty of the employees. In terms of tax exemptions, only the employer is eligible to claim for a tax deduction. Even though the insurance deduction gets reflected in the pay slip of the employee, the person cannot claim any tax deduction on that basis.

Group Health Policies Tax Finding

This makes one wonder why invest in Group Health Insurance when you cannot get the most important advantage? Apart from being a major tax reducer, health insurance policies makes your time during an ailment less stressful because you know that you are being covered by a health insurance which will not put a massive setback to you burger. But for that, you can avail any of the other health insurance plans or go for family floater plans. Still, it is advisable to avail the group health insurance policy offered by your company, because:

  • Sometimes a person is ineligible to avail an individual health insurance due to a pre – existing illness but with the employee health insurance policy everybody gets covered even though the ones who are deemed uninsurable. The standard group risk cover ensures of this.
  • In case of critical illness, all the associated expenses which include pre and post hospitalization expenses are covered under this policy. Even the ambulance charges, oxygen mask and nebulizers are included in this plan.
  • It is hassle free for the employee since there is no requirement for medical checkups prior to joining the group policy.
  • There is no waiting period for the settlement of claim. The moment you join the policy, you are covered even though you have a chronic illness which might face rejection. But with the, Health Insurance for employee your company takes care of that. In short, no matter what the disease is, the insurer is bound to pay for the hospital claim.
  • Even though the tax benefit is not reaped by the employee, the premium borne by the employee is less and not made part of the salary. Additionally, the premium is way less than that of an individual health insurance plan.
  • There is no age limit in order to be eligible for the group policy.
  • If the employee wants, they can have their spouses or aging parents enrolled. In case the employee plans to get a separate insurance, that will not affect the existing group policy.
  • This group insurance policy is especially helpful for women as they have a wider maternity coverage. Apart from including costs for normal or C – section deliveries, the policy also includes the care of the new born baby without the hurdle of the 90 days of maternity cover.

As much as the policy sounds like a dream come true for the employees, there are a few exclusions to what the policies will not cover. Even though most of the group policies come with the option of additional beneficiaries, may do not cover old parents. Homeopathy, Ayurveda or any other non – allopathy treatment is not covered by the company insurance. In case of drug and alcohol abuse, the treatments required and its expenses will not be covered by this policy.  But, the major exclusion is, the validity of the insurance with the company is there as long as the employee works with the company. The day you resign, you lose all the claim.

 

Author Bio –

 

Bella is a blogger and she passionate about writing on different topics like Insurance, Tech, Automotive, Finance and many others. She has been creating SEO friendly content for more than 5 years. For more info you can visit his blog at Wisdom Ancient.

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