Small Business Health Insurance is a type of healthcare insurance policy designed for businesses to provide medical coverage to ensure the well-being of their workforce.
Running a business in India comes with various challenges and responsibilities. Small business owners usually put a lot of effort and hard work to make it successful. SInce the employees of any organisation are its pillars, it is essential to ensure their good health and financial stability. That is why having a small business health insurance plan for your employees is essential.
These are the kind of health insurance specially curated for small businesses needs with fewer employees. Small business health insurance ensures business owners' support towards their dedicated workers.
Let us understand in detail how small business health insurance works.
Understanding Small Business Health Insurance
Health insurance, often named as mediclaim, is insurance coverage against medical conditions and treatments covered under the policy. Usually, health insurance covers the expenses incurred during a medical emergency. It protects the financial assets of the policyholders and helps them get the best possible medical care. Small business health insurance is a type of group health insurance policy taken by businesses to provide medical coverage to their employees.
This health policy is good for budding businesses that want to provide medical aid to their workforce without disturbing their budgets. Further, it also helps businesses fight medical burdens caused to their employees due to unforeseen circumstances.
How Small Business Health Insurance Works?
Group health insurance for small businesses functions similarly to that of larger corporations and businesses. However, this insurance policy is for a smaller group of employees. The organisation takes out this policy for their employees. In the event of a medical crisis, employees can rely on the coverage provided by this organisation.
This health insurance policy is available to businesses year-round. Usually, after buying the small business health insurance, premiums are locked in for a year. In that period, employers can add new employees to the plan. Not just this, employers can also remove the employees from plans that no longer work in their organisation.
At the end of the insurance coverage, the employer can renew the plan or go for any other group health insurance policy that aligns with their business needs
Types of Health Plans for Small Business Owners
Some of the small business health insurance plans for Indians are:
- Individual health insurance - The very first type of health insurance for small businesses is individual health insurance. This type of insurance policy provides coverage to single or individual employees. However, as this policy is particularly for individual employees based on their requirements, it might not be considered a cost-effective solution for small businesses,
- Group health Insurance - Another small business health insurance type is group health policies specifically designed based on small business requirements. Since it covers all business employees under a single policy, it suits businesses with constrained budgets.
- Family floater health insurance - Family floater is another small business health insurance for employees with dependents. Under this policy, the employee will get coverage not only for them but their family as well.
Reasons for Having Small Business Health Insurance
That goes without saying that small business health insurance helps businesses in various ways, from financial support to high-quality care. Some of the reasons for acquiring it are listed below.
- Healthy employees - The first reason to have a small business health insurance plan is to have healthier employees. Suppose you have a workforce that pays attention to health by regularly visiting doctors, optometrists, etc., then it ensures that they are more efficient. A healthier employee will work with more enthusiasm and dedication than a sick one.
- Better employee retention - If the employee gets the health insurance coverage benefit, he will remain loyal to the company. The loyal workforce ends the workload of organisations required to hire and train new employees.
- Tax* incentives - Another significant benefit is tax saving. Medical insurance expenses are exempt from taxable income. Employees with health insurance can save taxes by showing their medical insurance premiums when filing an ITR.
Conclusion
Medical insurance for small businesses offers various benefits, such as comprehensive health coverage and more. Not just this, it also saves businesses from unforeseen expenses that arise due to employees' medical conditions.
Small businesses are not only shielding their employee's health but protecting their financial assets as well with health insurance. So, investing in the right small business health insurance is much needed.
However, before buying any insurance for a business, such as SME insurance or medical claim, it is best to compare the pricing and benefits. Ensure to choose an insurance plan that aligns with your business requirements.