Benefits of employee health insurance | Fusion - WeRIndia

Employee benefit insurance plans are a popular option for employers to offer to their employees. These plans offer a range of benefits that can help employees and their families in various ways.

Employers can offer these plans to attract and retain talent while providing valuable benefits to their employees.

To be eligible for an employee insurance policy, a company, corporation, partnership firm, or private and public companies must provide these plans to their employees.

Additionally, the employer must have at least 20 salaried employees registered under them. Also, there should be a salaried relationship between the employer and employee.

In addition, it should be reflected in the books of accounts. However, eligibility criteria may vary depending on the insurance provider.

Here are the key benefits of employee benefit insurance plans and the eligibility criteria for these plans:

Employee benefit insurance plans are typically low or no-cost for employees. The premiums for these plans are usually absorbed by the employer. So they are a more affordable option than private insurance policies. This can provide peace of mind for employees who may struggle to afford expensive medical bills or insurance premiums.

Employee benefit insurance plans provide coverage for legal liabilities and unforeseen events. This means that if something happens to an employee while they are part of the company, their family members can still be covered. This can be especially important for employees who have dependents or who are the primary earners in their households.

Certain employee benefit schemes offer long-term savings and income opportunities that can be realized at retirement as pension income. It can help employees plan for their future and achieve their financial goals. Thus they can save money for their children’s education or their own retirement.

Employee benefit insurance policies also offer protection against accidental injuries, death, or disabilities. The nominated family member can receive compensation in the event of the policyholder’s death within the policy tenure. However, the policyholder must be part of the same organization.

Besides, both employees and employers receive tax benefits from these insurance policies. The employee can claim tax advantages under Section 80C of the Income Tax Act, 1961, for the premiums they pay. At the same time, the employer can show the premium amount as a business expense to receive tax benefits.

Employee benefit insurance plans provide cashless benefits at networked hospitals. It can be a significant advantage in case of medical emergencies. Importantly, the policyholder does not have to pay anything upfront to the hospital. Instead, the insurance company will directly settle the claims with the networked hospital.

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