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The Next Big Thing in Group Health Insurance for Startups

insurance for startup employees

Before we talk about Group health Insurance for startups, let’s talk about existing times. This is one of the best times to be alive and ironically also one of the worst times to be in. Wealth and health are faltering and building up at alarming paces, uncertainty is widespread. But you know what else is widespread – the spirit of entrepreneurship, innovation, and creativity and ideas are running high, and start-ups are all the rage.

There are approximately 472 million entrepreneurs in the world right now and more than 50000 start-ups just in India. And for anyone who thinks it is not a big deal, then consider this – about 10 billion dollars were raised by Indian start-ups just in the quarter of July to Sep 2021. So yes, they are here to stay, and the word start-up may be small but their prospects are anything. Now honestly speaking I may not know much about how to build a successful one, but I know for sure that it requires a team. A team that can become the team.

So how does one build such a team, by obviously compensating them well, and keeping them motivated and inspired?

There are many decisions to make when building a start-up, who to hire, what to do. And among many important decisions, startups need to consider group health insurance as part of their deals. So, let’s talk about group health insurance for startups. Now one may think why to spend extra money when it can probably be aligned elsewhere.

group health insurance benefits for startups list

A good question and here’s why start-ups need to think seriously about offering their employees’ group health insurance:

  • Cost: is economic, the number of employees in a start-up is less which results in a lesser amount of premium. Also, there are various payment schedules available to choose from quarterly, bi-annually, or annually, which allows for better allocation of funds. Also with tax benefits offered, in the long run, GHI works as an investment.
  • Builds Trust: there is an age old saying that a company belongs to no one, but that is not a team building exercise. Trust levels take a hit and along with it drive the productivity of an employee. But a GHI sends the right message that an employee’s health is of importance as well. It makes employees feel more appreciated and builds on trust level, helping them bring out their best.
  • Comprehensive plans: start-ups can offer more flexible plans than just traditional plans. Looking at the average age of their employees (which in the case of start-ups is generally younger). These also help attract and retain the talented team you require for your successful venture.

Recommended Post – How to Pick an Affordable Group Health Plan for Your Start-up?

 Now let’s jump on to a few key factors to keep in mind when looking at Group health Insurance for start-ups:

  • Premium: if you want to pay the entire premium or have the employees contribute to it. Especially if the coverage for family members is being offered as well. The size of the firm and the number of people covered, along with average age also play a hand in deciding the premium amounts being set by the insurance company.
  • Filing of claims, as start-ups don’t have higher manpower it’s best to consider app based claim filing system, rather than the traditional methods. This saves time, effort, and bucks in administrative costs.
  • Sufficient coverage, a market study to find the right amount of coverage to be provided and offered.
  • Designing your own plans would require some research on the start-up part, to find the best agencies that can offer plans that would work out best for the people involved.

In the end, whether it’s a corporate or a start-up, it’s people we need to work with, and these days people know what they need and what they can get. We need to invest in people the right way because health is new wealth.

And group health is the group wealth. Hope you liked this piece on group health Insurance for start-ups! Do let us know in the comments below.

Susheel Agarwal

Susheel Agarwal

Susheel is the CEO of Ethika Insurance Broking P Ltd. This company, which has a current value of 10 million dollars, was bootstrapped by him and two of his friends. He attributes his success to his ability to inspire others to seek happiness at work.

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