Group Medical Insurance Premium Calculator

Top Benefits of Using a Group Medical Insurance Premium Calculator

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Employers usually purchase group medical insurance for their employees. In group health insurance, a single policy covers the medical expenses of multiple people named in the policy. There are multiple group health insurance plans in the market differing in the premium amount, benefits, and other features. The essential task of an employer wanting to purchase group health insurance is determining the premium amount and the benefits it offers. 

Let us now understand the benefits of using a group medical insurance premium calculator.

What Is Premium?

Premium is a pre-determined amount of money that needs to be paid at regular intervals to the insurer to get and continue insurance coverage. The period for which the insurance cover is active is written in the policy document. The premium amount needs to be paid at the end of the coverage period to continue the coverage.

In group health insurance, the employer needs to pay the entire premium amount or a part of the premium amount, with the employees paying the rest, whatever the case may be. 

What Is a Group Medical Insurance Premium Calculator?

Websites of group health insurance providers feature an online tool called group medical insurance premium calculator. It uses various factors such as average age, the number of members insured, sum insured, and others to automatically calculate an approximate premium amount. 

Here are some of the main benefits of using the group medical insurance premium calculator for employers looking for a good health insurance policy.

Know the Approximate Premium Amount

Group medical insurance premium calculator gives a clear idea about the approximate premium amount required to be paid for a particular group health insurance plan. Determination of the approximate premium amount enables the employer to know whether or not a particular plan is suitable for the company’s finances or not.

Simplifies the Complex Process

Many factors need to be considered to calculate group health insurance premiums. Manually calculation is highly confusing and can lead to errors. A group medical insurance premium calculator, on the other hand, swiftly calculates the premium amount correctly and gives an instant price quote. All one needs to do is enter the required details in the given fields and click on the calculate button. 

Compare Plans

Multiple health insurance companies offer different types of group health insurance plans. Using a group medical insurance premium calculator, the premium amounts of various plans can be compared given the coverage benefits. The calculator can also be used to compare the premium amounts of two similar plans by different insurers to determine the cost-effective option. 

Altogether, browsing through various group health insurance plans becomes easy. 

Know the Cost of Add-Ons

Add-ons are extra benefits that enhance the group’s health insurance coverage scope. Using the group medical insurance premium calculator, the available add-ons can be selected, and the premium amount can be calculated to know the extra cost of add-ons. 

By comparing the premium amount with add-ons and without add-ons, the employer knows the extra cost of opting for add-ons and whether or not the extra cost is sustainable.

Filter the Plans

Based on the premium amounts calculated using the group medical insurance premium calculator and the coverage benefits, the plans deemed suitable in terms of affordability and required benefits can be shortlisted. Thus, it becomes easy to select the right plan from many plans.

Ease of Getting Quotes

Almost every insurance company has a dedicated group medical insurance premium calculator on its website. This means the price quote is received directly from the insurer without the involvement of any third-party entity. There is no manual process involved because all one needs to do is visit the website of the preferred insurer.

Parameters Can Be Adjusted

Group medical insurance premium calculator allows calibration of various parameters. By varying the parameters, the users are free to determine the optimal premium amount for each set of parameters. For example, the sum insured can be increased or decreased to view the changes in the premium amount.

Helps in Planning the Budget

By determining the tentative premium amounts of different plans by various insurers using a group medical insurance premium calculator, it becomes easier to pinpoint the plans which provide the required benefits within the budget. It also becomes simple to decide whether or not to increase the budget given the benefits.

Factors Affecting Premium Amount

Type of Group

The type of group plays an important role in determining the premium amount. Employer-Employee groups such as companies, clubs, and associations are considered low risk because the members are from the same socioeconomic background. Hence, the group health insurance premium rates for such groups are lower than trade unions and farmer groups.

Average Age of The Employees

The average age of the employees is another important determinant of the premium amounts of group health insurance policies. The greater the average age more is the premium. This is because higher age carries more risk in the insurance industry.

Number of People Covered

The premium amount is directly proportional to the number of people covered under the group health insurance. Thus, entering the correct number of members in the group medical insurance premium calculator is necessary to get the right price quote. Employers are also required to factor in increasing employee strength in the future.

Sum Insured

The sum insured depends upon the scope of benefits provided by the policy. The higher the sum insured, the more is the premium of group health insurance. Since the sum insured increases with the addition of the family members of the employees, the premium also increases.

Optional Coverage Benefits

Add-ons or optional coverage benefits increase the premium. Each kind of add-on has a price that increases the premium. The employees are at freedom to opt for add-ons by paying the extra premium amount.

Premium amounts of group health insurance policies for employees working in hazardous environments carrying a high risk of injury or disease tend to be high because of the enhanced risk factor for the insurers.

Conclusion

It is easy to access a group medical insurance premium calculator. All you need to do is visit the website of your preferred insurer and use its calculator.

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