Imagine you’re a small business owner, weighing up the idea of offering Group Health Insurance but worried about the cost. It's a common concern here in the UK, where the myth persists that insurance is just too pricey for smaller companies. That belief can hold back businesses from realising the full advantages of a Group Health Insurance plan for their team. Below we’ll dispel common health insurance myths and show how these plans are not just about supporting the health and welfare of your employees, but are also key to boosting your business's performance.Myth 1: Group Health Insurance is too expensive for small businessesMany small business owners assume that the cost of Group Health Insurance is beyond their financial reach. However, various plans are specifically designed for small businesses, offering cost-effective solutions. Investing in health insurance can also lead to long-term savings by enhancing employee health and productivity, which helps answer the common question, Is private health insurance worth it? YuLife's approach provides cost-effective solutions that bring more than just healthcare. From attracting the best talent to reducing absenteeism, there are lots of reasons why your small business needs to offer health insurance.Myth 2: Health insurance is one size fits allContrary to popular belief, Group Health Insurance plans can be highly customisable and adapted to suit different business sizes, budgets, and employee needs. This flexibility allows employers to provide their team with a valuable benefit that aligns with both their financial capabilities and their employees’ requirements.YuLife, in particular, stands out by offering customisable health insurance policies that go beyond standard care. We focus on holistic wellbeing, incorporating daily engagement tools and rewards through our employee app, catering to diverse employee needs.Myth 3: Group Health Insurance doesn't offer real benefits to employees Employers can underestimate the value of Health Insurance in their employee benefits package.In reality, Group Health Insurance can play a significant factor in employee wellbeing, offering peace of mind and access to necessary healthcare. Yes, we have the NHS in the UK, which millions rely on, but the reality is that people are currently waiting more than 14 weeks to be seen by an NHS doctor, and more than 7 million are awaiting treatment.Offering your team Group Health Insurance not only provides real benefits to your employees but also fosters stronger engagement and loyalty to the company.What’s more, YuLife's policy is more than just insurance. It's a comprehensive wellbeing tool that includes rewards such as retail vouchers, wellbeing app discounts, and health assessments to actively contribute to employees’ daily wellness and engagement—not just their medical needs.Myth 4: The administrative burden is overwhelmingThe idea that managing a plan is overly complex is a common health insurance myth. Many insurance providers offer streamlined administrative processes and support, making it manageable for HR teams. It’s also worth noting that the benefits of a healthier, more satisfied workforce can far outweigh the administrative tasks involved.But with YuLife, there is no administrative burden. We simplify the process of obtaining and managing health insurance, with clear guidance and support every step of the way, from initial inquiry to policy implementation and ongoing HR insights.Myth 5: Healthy Teams Don’t Need Health Insurance Even the healthiest teams can face unexpected health issues. Group Health Insurance makes sure that when unforeseen medical needs arise, employees are well-supported. This safety net is crucial not just for individual health emergencies, but also for maintaining overall team morale and security.But with YuLife, we take it a step further. Our health insurance is proactive, rewarding healthy behaviours such as walking, cycling and meditation in the form of our digital currency, YuCoin, which can be redeemed for vouchers with popular retailers or even donated to charities of your choice. Our approach benefits even the healthiest teams by encouraging and rewarding ongoing health and wellness activities.Myth 6: It’s just a 'perk', not a necessity While some view Group Health Insurance as an optional perk, in today's competitive job market, it's increasingly seen as a necessity. Offering health insurance can significantly enhance a company's attractiveness to current and potential employees, reflecting a commitment to their wellbeing and making the company a more desirable place to work.“Candidates in the marketplace are looking at businesses that focus on employee wellbeing,” says Cerian Morris, Director of HR at consulting and IT firm XMA, which has raised its Glassdoor rating from 3.4 to 4.2 since partnering with YuLife. “It’s one of the top drivers when top talent candidates are looking to move jobs.”Myth 7: Employees prefer higher salaries over benefits such as Health Insurance While salary is important, many employees highly value benefits such as health insurance. For some people, the security and support provided by comprehensive health coverage are more appealing than a higher salary. In fact, around two-thirds of employees (59%) say they’re willing to give up some salary in order to get better health care benefits.According to data from YuLife’s Workplace Wellbeing Trends 2025 report, more robust health insurance or physical wellness programmes were the third most requested wellbeing support mechanisms (after flexible working and paid wellness days) that employees would most like their employer to offer in 2025.Myth 8: Group Health Insurance doesn’t impact employee retention or recruitment Offering Group Health Insurance can be a decisive factor in an employee's decision to join or stay with a company. At a time when employees are increasingly valuing benefits alongside salary, providing health insurance can greatly enhance a company's ability to attract and retain high-quality staff.The data in our Workplace Wellbeing report identified a strong correlation between employee retention and wellbeing: 71% of respondents who rated their wellbeing as ‘good’ said they would not be looking for a new job in 2025, compared to only 30% of those with poor wellbeing. This underscores the direct impact of effective wellbeing strategies such as Group Health Insurance on employee retention and turnover.Myth 9: Providing Health Insurance increases sick leaveContrary to the health insurance myth that it encourages unnecessary sick leave, providing a healthcare plan results in employees who are less likely to need extended time off. Regular access to healthcare can lead to earlier diagnoses and treatments, reducing the overall time needed for recovery and thus minimising long-term absenteeism.At wet wipe manufacturers Nice-Pak, absenteeism fell by 50%, from 4% to 2%, after partnering with YuLife, and there has been a huge increase in engagement with health and wellbeing tools.Since starting to use the YuLife app, Nice-Pak employee Mark Lloyd has increased his distance covered from less than a mile a day to an average of about 12-13 miles. “I’ve taken my belt in by two notches,” Mark says, adding that having the YuLife app in his back pocket has been the “driver” or “motivational tool” on his wellness journey.“I would probably get a headache every 2 or 3 days,” he adds. “I can absolutely, hand on heart, say that since I started [YuLife] I haven't had a single headache.” About YuLife.YuLife is working to reimagine the insurance industry by protecting lives, rewarding living and inspiring life. We’re on a mission to transform traditional insurance into a life-enhancing experience each employee will value and use daily. How does it work? Our award-winning app uses behavioural science and game mechanics to reward your people for living well while offering protection in case of crisis. And with our top-rated employee assistance programme, your team gets access to mental, financial and social support, virtual GPs, nutritionists, life coaches and more to help them live their best lives.Because we believe that your employees should benefit from their insurance from day one — and that wellbeing should be accessible every day, for everyone.Request a demo for your team today.