Small business owners often don’t think about getting health insurance for themselves or their families. After all, running a business and ensuring its success is a full-time job and the last thing a small business owner needs is the added stress of researching and buying health insurance policies. However, health insurance is an important risk-mitigation tool and a vital factor in financial planning. Health insurance is not only beneficial for small business owners, but their families as well.
This blog will discuss the importance of healthcare insurance for small business owners and things to consider before buying the best-suited plans for them.
Importance of Health Insurance
Health Insurance is an important factor for small business owners in India. It provides financial security and helps protect against financial losses resulting from illness or injury. Here are some of the reasons why health insurance is important for small business owners:
- Provides access to quality healthcare: Small business owners can access quality healthcare at an affordable cost, allowing them to stay healthy and productive.
- Prevents financial losses: Health insurance covers medical expenses, which can be a significant financial burden if left unpaid.
- Helps attract and retain employees: Offering health insurance as part of an employee benefits package can help small business owners attract and retain talented employees.
- Cost-effective: Health insurance plans like the family floater policies are cost-effective, since the cost is shared among the insured.
- Provides tax benefits: Small business owners can get tax deductions on the health insurance premiums they pay.
Types of Health Insurance Available
There are a variety of health insurance plans available in India, each offering different levels of coverage. Here is a closer look at the different types of plans available.
Top Up Health Insurance
Top up health insurance is mainly beneficial for business owners who already have a basic health insurance policy. Top up health insurance policies have a high deductible amount and offer coverage for large medical expenses. The deductible amount is the amount that you need to pay from your pocket before the insurance company starts to pay for the medical expenses.
Family Floater Health Insurance
This insurance policy is ideal for small business owners who want to include their family members in their health insurance policy. It is a cost-effective way to provide coverage for multiple family members. The sum insured in family floater health insurance policy is shared among the family members and is not based on individual family members. The family floater policy is beneficial as it covers all the family members, including the dependents, under a single policy.
Important Factors to Consider Before Buying Health Insurance
It’s important to take time to consider all your options before making a decision when choosing health insurance. Here are some elements to consider before buying health insurance:
Waiting Period
Many medical insurance policies have a waiting period before you can avail the benefits of the policy. Read the policy document carefully to understand the waiting period of different illnesses.
Claim Settlement Ratio
Take note of the claim settlement ratio of health insurance companies. It is the ratio of the number of claims settled by the insurer to the total number of claims received by the insurance company. A high claim settlement ratio shows that the insurance company is reliable and will settle your claim promptly.
Pre-existing diseases
Check if the health insurance policy covers pre-existing diseases. Some policies may not cover pre-existing diseases for a certain period.
Compare Premiums
Different insurers offer different levels of premiums, so it’s important to compare premiums to find the policy that offers the best value for your money. It is also important to use a health insurance calculator when buying a health insurance policy as it helps to determine the amount of premium that you need to pay for the policy.
It is essential for small business owners to understand the utility of health insurance and include it in their financial planning. There are various types of healthcare insurance policies available in the market and it is important to compare the policies before buying one. You can find various policies online and compare them to find the best policy for your needs. Niva Bupa offers an extensive range of medical insurance policies, making it an ideal choice for those looking to buy health insurance online conveniently and quickly.