There was a time when only a handful of providers had group medical insurance policies in their kitty. So, people had no option but to choose from any of these. But as times changed, banks started entering this space too.
In a time when everyone wants to offer a health insurance policy to you, you must understand the truth behind their promise of instant policy issuance, seamless claim redressal, and affordable premiums.
How do you compare group insurance policies by banks, and are they worth your time and money? We discuss it all in this article.
What is Group Medical Insurance?
A group health or medical insurance refers to a type of medical insurance policy offered by a bank to a group of individuals, usually employees or people belonging to the same family. These people receive coverage at a lower cost because the insurer’s risk is spread across individuals.
Who Can Sign Up For Group Medical Insurance From Banks?
While there is no set rule for getting a group mediclaim policy from banks, most banking institutions prefer offering it exclusively to their customers, such as depositors and account holders. In most cases, if the employer or the group admin has a good relationship with the bank, it becomes easier to acquire group mediclaim insurance.
Things To Know Before Signing Up For Group Insurance With Your Bank
Group health insurance, especially from banks, looks attractive for many reasons. But it is imperative for you to look beyond the glitz and understand why you should or should not subscribe to a plan.
The below pointers should give you a headstart:
It Is Linked To Your Account
The policy you seek is linked to you being a bank customer and being in their good books. As soon as you seize the relationship, your policy may expire too. The day you close your bank account, your corporate or general group mediclaim insurance will no longer be valid.
One-year Validity
Group health insurance policies are one-year plans that require you to renew annually. While it may seem more like a useless exercise for the policyholders, banks review the premium rates and risk and make the necessary adjustments on overall and individual policy levels.
Banks Often Withdraw Schemes
It is vital to understand that banks are not full-blown insurance providers. It means that you can always run into the risk of the banking organisation deciding to withdraw the policy or quit the sector altogether. In such cases, the organisation is responsible for migrating you to a viable alternative.
Service Can Be Erratic At Times
Most people in the bank may not understand how an insurance policy works or how the process of raising and accepting claims. It can often lead to confusion, leading to an awful customer experience. The instances of people having a below-par experience with banks offering group policies are known to everyone.
Why Choose A Bank As Your Group Health Insurance Provider?
Banks are one of the most vital cogs of an economy and will remain one of the most trustworthy. But when it comes to group insurance policies, are they any good? Let us delve into its advantages to deduce:
- The premium outflow is considerably cheaper than other mainstream public and private insurers.
- Some banks have started offering lifetime renewals for specific group health policies.
- Banks do not ask for medical tests unless you have crossed a specific age limit while providing group health plans.
- Subscribers to these policies can avail of deduction under Section 80D of Chapter VIA to help reduce their taxable income while filing their income tax returns.
- Given that senior citizens require more extensive cover but do not always have the means to pay exorbitant premiums periodically, a group health policy from the bank they trust would bode well for older people.
Why Do People Sway Away From Group Health Policies By Banks?
While there are several perceivable reasons why people choose group policies from banks, there are certain disadvantages, too, that act as bottlenecks
- Banks, in most cases, offer insurance policies to their customers only.
- The sum insured amount is limited for most users.
- Given that banks are not insurance agents, claim settlement can be a challenging affair.
- Banks may abruptly decide to discontinue any or all of their group policies.
- Features pertaining to health policies can change every year.
- Most banking organisations have restrictions regarding entry age.
Banks Are Not Insurers But Are Sellers
While it is great that you are getting group medical insurance from banks for so cheap, there can often be hidden caveats that may not catch our attention immediately. Banks are not insurers themselves and are mere sellers looking to sell their products. So, there is a high chance of banking people misleading you and pushing you towards subscribing to a group policy that may not be the best fit for you.
We at Plum Insurance understand that people have diverse needs. So, we line you up with experts to help you understand your requirements and find the right group policies that offer maximum coverage and other features at a reasonable price. It enables you to get the most for the money you pay while being relaxed about claim settlement and the other features you get.