How are group health insurance plans given by Banks different from regular health insurance plans? Why do they enjoy low premium compared to regular health insurance plans?
Sumit Bhandari, Founder , HealthInsuranceSahihai. :- The advantage of group health plans is that medical underwriting, which is characteristic of regular health plans, is usually waived off. This results in considerably higher claims settlements. Medical examinations are not needed. Its cos os kept low as main target of Banks is to open new saving accounts . The premiums of group health plans tend to be low because people are insured in large numbers, thus allowing insurers to benefit from the economies of scale. The disadvantage of a group plan is that insurers or employers may not extend the insurance. So, you cannot rely on them for your medical coverage. In regular plans, the law requires insurers to renew the policy lifelong even after you make a claim.
To know more problems of Group Health Insurance Policy by your employers , see this video