Aditya Birla Group Term Insurance

What is a group term insurance plan? The principles applied to individual plans are part and parcel of this scheme, but only on a larger scale, covering groups. The most common insurer target group is the formal Employer-Employee, the informal Non-Employer-Employee, Affinity, Professional, Borrower-Lender, or a Social Group, who have assembled not with the sole purpose of buying a group term plan, but for a common interest. The two named Aditya Birla Group Term Insurancefall under the Employer-Employee category, with ample flexibility to customize the policy to meet the group’s aspirations.

Eligibility Criteria for ABSLI Group Term Plan

The primary quality needed to be a group member in theAditya Birla Group Term Insuranceis that the individual must be a permanent employee of the corporate intending to buy a suitable group plan meeting its requirements. Since the idea is to compensate the employee dependents for financial losses suffered in unforeseen events, the coverage plays a significant role in the protective shield. Two formulas often adopted are a flat coverage across the board for the group members and the graded, which is determined by several factors like rank and salary scale. The other eligibility criteria applicable to the plans are:

Salient Features of Aditya Birla Group Term Plan

Some of the key features making the Aditya Birla Group Term Insurancean attractive proposition are:

• A single master policy covers all the group members, while the scheme targets diverse groups. 
• The employer is the master policyholder and empowered with an administrative role for the creation, membership register maintenance, facilitating claim settlements, and liaison with the ABSLI office. 
•  While the Term Protection Plan protects the family in times of grave crisis, the Income Protection Plan secures the dependent’s future earnings even during health emergencies. 
• Total flexibility in fixing the coverage amount, which is either flat or graded

1. ABSLI Term Protection Plan:

   • A range of riders offered in the plan makes for comprehensive coverage.
   • High Free Cover Limit is determined by the sum assured and the group size, yet no medical examination is necessary. 

2. ABSLI Income Protection Plan:

   • Assured steady income for a limited period on dreaded disease diagnosis or disability due to accident or an ailment. 
   • Multiple options to fix income benefit parameters. 

Benefits of Aditya Birla Sun Life Group Term Insurance Policy

For easy comprehension, the Aditya Birla Group Term Insurance benefits have been clubbed under the specific plans:

ABSLI Term Protection Plan

1. Death Benefit:

   It is paid to the nominee when the covered member dies during the policy’s currency. The two options for the benefit receipt are:

   • Full Death Benefit SA in lump-sum. 
   • Death Benefit is paid partially in lump-sum, and the residual in regular installments spread over 1 to 10 years. 

2. Maturity / Survival Benefit:

   The plan does not provide any survival or maturity benefit. 

3. Rider Benefit:

   The policy offers a host of riders to enhance the sum assured in events as diverse as an accidental disability in different grades, critical, and terminal illness in both addition and accelerated versions. However, all the riders may not be chosen, and the combinations are defined in the policy document.  

ABSLI Income Replacement Plan

1. Income Benefit:

   The benefit gets triggered when the member is diagnosed with any of the listed diseases or suffers disability resulting from an accident. The defined benefit sum assured is paid in installments up to 24 months in various proportions. 

2. Death Benefit:

   Nil.

3. Maturity / Survival Benefit:

   Nil.

The Process to Purchase Aditya Birla Group Term Plan

The traditional method of Aditya Birla Group Term Insurance purchase has been replaced to a large extent by the digital platform. This is the choice method and popularly patronized by the millennial generation for the inherent convenience of operating remotely anytime and anywhere. On the flip side, not all plans are offered for online purchases. In such cases, brick and mortar office agents are the best bet. Employers can also engage broker services to land a suitable deal. The other option is to access the ABSLI official portal and request the Relationship Manager’s services by providing essential information. 

Documents required to Buy Aditya Birla Group Term Insurance

The common thread that binds all group term insurance plans is the administrative simplicity and membership enrollment ease. The Aditya Birla Group Term Insuranceis no exception where the documentation is the master policyholder’s responsibility. The documentation related to claims, on the other hand, is subject to compliance with insurer-defined rules and regulations. Accordingly, the indicative document list in typical claim situations is tabulated below. However, this does not preclude ABSLI from calling for additional documents for claim evaluation, as and when required. 

1. Death Claim:

   • Claim Form.
   • Death Certificate.
   • Nominee’s KYC documents.
   • Nominee’s bank account details.

2. Accidental Disability:

   • Apart from the above. 
   • Police reports and documents. 
   • Doctor’s certificate regarding disability status. 

3. Critical Illness:

   • Hospital medical records, including discharge summary.
   • Diagnostic and investigation report confirming the critical illness. 
   • Independent doctor’s opinion on the critical illness diagnosis. 

Other Features:

ABSLI Term Protection Plan

1. For the employer:

   • Helps to fulfil social obligations.
   • It is a cost-effective, comprehensive protection package 
   • It acts as a potent financial tool to retain talent and reward performance while protecting key human assets. 
   • The employer is eligible for tax exemption under Section 37 (1) of the Income Tax Act, 1961, as the outgo is categorized as a legitimate business expense. 

2. For the employee:

   • The member is free to choose the flat or the graded coverage, to suit individual preference.
   • The spouse is also eligible for joint cover under the scheme.
   • The coverage is variable and may increase upon the change in the member’s rank status. 
   • The member can choose to continue the policy as an individual if the master policyholder surrenders the policy. 

ABSLI Income Replacement Plan

1. For the employer:

   • It helps the master policyholder widen the protection ambit to cover the employees from lost income in health emergencies. 
   • It is a cost-effective method to compensate the employee’s family suffering financial loss due to an accident or a debilitating disease.

2. For the employee:

   • Multiple options to receive income benefit as a steady income to absorb the income loss from health emergencies.
   • The sum assured can be increased or decreased to customize the plan further. 

Terms and Conditions

1. Free-look: 

   The Aditya Birla Group Term Insurancenamed ABSLI Term Protection Plan does not provide any free-look to the policyholder. However, a 15 day period is available in the ABSLI Income Replacement Plan.

2. Grace Period:

   • Annual frequency: No grace period is allowed as the policy is renewable annually.
   • Other frequencies: A 30 day grace period is allowed from the default date for renewal.

3. Reinstatement:

   The facility is available for frequencies other than annual. If the grace period is over and the premium is in default, the policy may be revived within the policy term.

4. Nomination:

   It is available as per provisions of Section 39 of the Insurance Act, 1938. 

5. Assignment:

   While there is no Assignment provision in ABSLI Term Protection Plan, the ABSLI Income Replacement Plan provides An Assignment facility as per the Insurance Act, 1938. 

Key Exclusions

1. ABSLI Term Protection Plan

   There are no exclusions to consider in the EE compulsory groups. But in the case of NEE voluntary groups, both the suicide exclusion and waiting period for a maximum of 45 days from the risk commencement date are applied. 

2. ABSLI Income Replacement Plan

   • Waiting Period: The members have to wait for 90 days from the policy commencement date compulsorily. The same principle applies to the revived policy. 
   • Survival Period: This clause is applicable for the benefit to be triggered both in the case of critical illness and disability when the affected member has to survive for 30 days from the first event occurrence date. 
   • Other Exclusions:  It is already seen that the 90 days waiting period applies to critical illness with a direct or indirect impact on the diagnosis. In the event of disability, any of the following affecting the disability status will impact claim settlement and lead to repudiation. 
   • If the condition in any way was pre-existing, then the claim is likely to be denied.
   • The medical condition arising from HIV affliction 
   • Self-inflicted injury or participation in criminal activities
   • Medical conditions arising due to alcoholism, solvent abuse, and drug addiction
   • Acts of war, invasion, conflicts, or civil acts creating riots, strikes, and disturbances
   • Participation in war games involving the army, air force, and the navy during peacetime.
   • Use of the aviation industry professionally or otherwise, but not as a regular bonafide passenger using the regular airline services.  
   • Indulgence in extreme sports,  hazardous adventures, potentially dangerous hobbies
   • Radioactive contamination or nuclear peril arising from leaks, accidents, or handling such materials
   • Treatment of congenital anomalies, both internal and external

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