Group Life Insurance

In the present scenario when almost all companies have an easy access to technology and systems, it's the people that distinguish great companies from good. You need to keep your organization's most important resource - your employees - happy and taken care of. One of their prime concerns is the security and safety of their families. Share this responsibility by providing them with a solution that would meet their needs.

Group life insurance ensures financial security to the family in the unfortunate event of a group member's demise. It is an offering to both employer-employee group and non employer-employee group, which includes non-banking financial institutions, microfinance institution, banks and other institutions. As it involves bulk buying insurance, it costs less. Group life insurance offers coverage only on death and there is no maturity value in case the policyholder survives the insurance tenure.

The scheme is offered for one year. Every year on the date of renewal, insurer charges the premium depending on the age of members and size of the group.

Features of Group Life Insurance

The policy comes loaded with such features as:

  • Provides life cover to all members of a group
  • One master plan to cover all members of the group
  • Annual renewable term plan
  • Worldwide coverage
  • Addition and deletion of members at any point of time
  • Quick claim settlement process

How Does Group Life Insurance Work?

The group life insurance is offered through a master policy which is issued to the group administrator. Here are the steps to buy group life insurance-

Step 1: Decide the Cover Amount

Choose the amount of cover you want for each member of the group

Step 2: Choose the benefit option

The master policyholder can choose sum assured for the group from any of the following-

  • Flat Coverage- It includes outstanding loan, bank deposit size, etc.
  • Graded Coverage- It is based on the grades of employees in a company.
  • Salary Multiple- It is computed on the basis of multiple of salary

Step 3: Get a premium quote on PolicyBazaar

Fill in your basic details and we will come up with different plan options.

Step 4: Pay the premium

Pay the premium to start the coverage. The policy offers coverage for a period of one year from the date of risk commencement, subject to receipt of premium.

In case of sudden demise of the member, nominee is entitled to get death benefit. Thus, it offers the financial security to the member's family.

Benefits of Group Life Insurance

As a group administrator, you can enjoy the following benefits-

  • Offer welfare benefits to employees and their families at a nominal cost
  • Availability of optional riders at low premium such as accident benefit rider, accident and disability benefit rider, critical illness rider, accelerated critical illness rider, etc.
  • Choice of preferred premium payment mode
  • Premium paid enjoys tax benefits under Section 37(1) of the Income Tax Act , 1961
  • Cost effective method to buy an extensive cover at low rates

Need Help?

There are various companies offering group life insurance plans and each one of them has its own benefits, making it tough to choose. PolicyBazaar facilitates easy comparison of plans to help you pick the right plan. We assist you by sieving through different group insurance policies and help you find the plan in sync with your expectations.

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What is a Group Life Insurance Policy?

Ans:

Group life insurance policies offer collective coverage instead of an individual cover to a group of individuals. Usually, employers provide this cover to their employees under the EPF and Miscellaneous Provision Act 1952. The group can consist of any number of individuals who share a commonality, like employees of organizations, members of a society, club members, shareholders or a group of bank accountholders.

Will it Cost Less Than an Individual Life Insurance Plan?

Ans:

Normally, the cost of a group life insurance is lesser than an individual life insurance plan.

What is a Contributory and Non-Contributory Plan in Group Life Insurance?

Ans:

In a contributory group life insurance plan, the beneficiaries make a partial or full payment for premium amount. For instance, the employer may deduct a specific percentage of the employees’ salaries, to provide them cover in a group life insurance plan.

In a non-contributory group life insurance plan, the insured members are not required to pay any amount in order to get coverage under the plan. For instance, if a company is paying the total policy premium amount for every one of its employees, then it will be a non-contributory group life insurance plan.

What are the Key Features of a Group Life Insurance Policy?

Ans:

1. All the group members get life coverage

2. This is an all-inclusive plan

3. The plan can be renewed annually

4. The plan offers global coverage

5. Members can be added or removed at any point of time

6. Quick and easy claim settlement procedure

What are the Various Kinds of Group Life insurance Plans?

Ans:

 Usually, these are the variants of a group life insurance plan -

1. Group Term Life Insurance

2. Group Gratuity Plan

3. Group Mortgage Redemption Assurance Scheme

4. Group Critical Illness Rider

5. Group Investment Linked Insurance Plan

6. Group Leave Encashment Scheme

Can Group Life Insurance be Converted after Completion of Employment Term?

Ans:

Usually, the coverage ends as soon as one’s employment is terminated.  In order to get it changed to an individual life insurance plan, you might need to pay an extra premium. This is subject to the insurer’s terms and conditions, and the plan you have subscribed to. However, there will be a hike in prices after the switch.

Mention Some of the Popular Group Life Insurance Providers in India

Ans:

Some of the Insurance providers that offer group life insurance in India are - Bajaj Allianz, SBI Life, LIC & ICICI Prudential Life Insurance.

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