Group Insurance

Insurance

Group insurance covers a group of people (usually employees) under a single master policy. Employer group health insurance is the most common -- employer pays premium, employees get coverage. Cheaper per member than individual policies due to pooled risk.

In detail

Group health insurance features:nNo medical examination for joining (employer group)nPre-existing diseases typically covered from day 1 (unlike individual with 3-4 year waiting period)nNo age loading (50-year-old employee and 25-year-old employee pay same premium in group)nTermination: coverage stops immediately when employment endsnnGroup term life insurance: employer pays premium for Rs 1-5 Cr term cover for each employee. Cost: approximately Rs 500-2,000/year per employee (very cheap vs individual).nnLimitation: group coverage is not yours -- you cannot take it when you leave. Always supplement with personal health and term insurance.

Formula

Group insurance premium per employee = Total group premium / Number of employees

Real-life example

🇮🇳 India example

Rajiv's company provides: Rs 5L group health (family floater) + Rs 1 Cr group term life. His parents' pre-existing hypertension: COVERED from day 1 (group policy). He leaves job in 2025. Group coverage stops. His personal Rs 10L health policy (which he wisely bought at 30): continues. Without personal cover, he would need to get new insurance with pre-existing conditions declared -- much higher premium.

Frequently asked questions

Should I rely only on employer group health insurance? ▼

Never. Group insurance stops the day you leave the job (or company switches insurer, or reduces cover to cut costs). Personal health insurance must be purchased in your individual name, preferably at a young age. View employer group insurance as a supplement, never as your primary cover.