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Can start-ups get health insurance? Yes and here’s how

Can Start-ups Get Health Insurance? Yes And Here’s How

Start-up businesses have long been underserved by the health and protection insurance market. Bigger businesses with bigger budgets seem to get all the attention from most insurance providers.

No awards offered for guessing why!

Unsurprisingly, most insurance products are designed for that audience. But dig beneath the surface and it’s possible to unearth products offering good value health and protection insurance for start-ups too.

In this article, we outline some of the key health-related insurance products which can be accessed by start-ups and small businesses.

Group health insurance

Also known as business health insurance, it gives you the chance to provide private health coverage to multiple people within a business. The more people included, the better the deal you can negotiate.

Not all group health policies are made equal. There are a variety of services and treatments which could be included in the deal and all manner of added extras.

It usually includes things like:

  • Inpatient treatment (such as surgeries requiring overnight stay)
  • Outpatient treatment (treatments not requiring a hospital stay)
  • Consultations
  • Tests and scans
  • Cancer cover
  • Therapies (such as physiotherapy)
  • Mental health support

There’s no denying that it’s harder to get group health insurance for start-ups and small businesses. Indeed, they often have too few staff to qualify. Yet, we’ve previously negotiated group insurance deals for businesses who otherwise would have been considered too small.

How did we manage that? We have relationships with all the major health insurance companies which means they’ll offer arrangements not available on the market.

If you’d like our assistance in negotiating the best health insurance policy for your small business, simply get touch via the chatbox.

Business health cash plan

This is a simpler alternative to a group health plan. It’s easier to implement because it restricted to routine medical treatments and services – which means limited, if any, background checks.

The kind of services offered include:

  • Medical consultations
  • Dental appointments
  • Eyecare
  • Physiotherapy
  • Counselling

As with any insurance plan, what’s included can vary wildly. It works like other types of health insurance. You pay a fixed sum each month which allows you to claim on the medical assistance outlined in the policy. You can cover costs in full or contribute part of the cost.

The major advantage of a business health cash plan is that everyone can benefit from the scheme, regardless of their medical background. So, even those with pre-existing ailments can enjoy the benefit.

Group income protection

If one of your team suffers an accident or illness which leaves them incapable of working, then a group income protection policy – AKA sick pay insurance – will have them covered.

In this scheme, the insurer usually pays out half or two thirds of the employee’s monthly pay packet. The pay out usually ends when the person recovers, retires, is made redundant or passes away.

You’ll often be offered additional services such as rehabilitation and absence management. This means the insurance company provides tools to help you reduce absenteeism and speed up recovery for those off work – in the nicest and most responsible way, obviously.

Need one-to-on advice from a friendly expert? Then give us a call on 01273 222805 or use the chatbox to the right. We specialise in getting health insurance for start-ups who would otherwise struggle to get a deal.

Group critical illness cover

A critical illness is defined as a lifechanging diagnosis which cannot get better with treatment. Group critical illness cover will provide financial support to employees and their families should such a terrible situation occur. Conditions covered usually include: cancer, Alzheimer’s, liver failure and paralysis.

The cost of this insurance will vary depending on the age and medical histories of your employees. Pre-existing illnesses are usually excluded.  As with all these policies, there are individual or group versions available.

Group life insurance

Similar to the above, except it provides financial support if somebody in your business dies. The employee’s family is paid a lump sum in order to deal with the financial implications.

You might also see it referred to as employee life insurance, corporate life insurance – sometimes even death in service insurance.

Relevant life insurance

Unlike group policies, relevant life insurance is designed for one individual only. It pays out a lump sum if the employee sadly passes away (or in some policies, is diagnosed with a terminal illness).

It’s a particularly useful form of health insurance for start-ups and the self-employed because you don’t have to have a minimum of two people in the policy in order to qualify (which is the case in a group plan).

If you have more than one person you’d like to cover, then you’re better off purchasing a group life plan as that will work out cheaper.

Key person insurance

If your start-up company has one person they would really struggle to live without, then a key person insurance policy is well worth a look. Should that person suddenly become unable to work, either due to illness, accident or death; then this insurance covers the financial implications for your business.

While all insurance policies are individually tailored, this one is more business-specific than most. It requires an analysis of:

* How much the key person contributes to the profits of the business

* Whether there are any outstanding debts that need covered

* Key clients which depend on the key person’s relationship with them

* How much it would cost to replace them

In short, if you lose this incredibly important person, then you can financially deal with the fall out. The smaller the business, the more reliant you are likely to be one or two people (including you, the owner, of course). This makes it a very useful form of health insurance for start-ups.

Unlocking health insurance for start-ups

The common theme across all these insurance policies is this: terms and conditions apply!

Insurance companies will offer enticing add-ons which can increase the value of the product. Inclusions and exclusions will also vary from one insurance company to another, making direct price comparisons very difficult.

But what it always boils down to is what works best for you. Is it affordable? Does it fulfil the needs of the business? Will employees find it useful?

As a specialist small business health insurance broker we pull together deals from across the insurance market and deliver the best straight to you. We can also advise on how to implement the schemes and the different means by which you can offer benefits to your employees.

If you’ve got a laundry list of questions, then give us a call on 01273 222805 or use our chatbox in the bottom right corner of the screen. Our team of friendly professionals are always happy to talk!

Charlie Cousins

Founder and Director of Hooray Health & Protection, Charlie Cousins has enjoyed a career in the insurance and financial services industry spanning over the last ten years.

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