Group Life Insurance

Value Creation

The first and foremost objective of any organization is to create value for its customers. To achieve maximum value creation, the corporation and employee must work toward the same goal. This can be done when the employees are satisfied and they have a sense of security.

Attract Talent

Group life insurance is a security measure that safeguards employees and their families against any uncertainties. When joining a workplace, employees prefer an organization that offers maximum security and benefits.

Talent Retention

Employees choose to stay when they feel protected and get sufficient benefits when required. The company has a higher probability that its employees will stay for a longer period when they offer maximum protection.

Increased Productivity

The group life insurance policy keeps the employees stress-free while doing their jobs. Ultimately, increases focus and productivity towards work.

Assured Retirement

The group life insurance offers financial coverage even after the employees complete their employment tenure. This way, employees can ensure financial security after retirement.

Tax Benefits

The premium paid towards group life insurance falls under the employee benefit cost to the organization, i.e., business expenses. Hence, the employer can avail of tax benefits on the group life insurance plan.

Group Term Life insurance

Group Term Life Insurance is the basic life insurance policy designed to offer life insurance benefits to a group of people, usually the employees of a company, for a limited duration. A group term life insurance provides financial assistance to the dependents of the covered employee.

Group Health Insurance

Group health insurance policy provides medical assistance to the group of people covered under the policy. These plans typically provide comprehensive group medical coverage, including prescribed drugs, tests, medical procedures, and other healthcare services.

Group Personal Accident Insurance

Group personal accident insurance covers the members of an organization against accidental death or disability. This policy shields the insured and the dependents from accident-related financial stress, including medical costs, income reduction, and other hassles.

Group Gratuity Insurance

Under group gratuity insurance, the employer provides a lump sum fund to the employee or beneficiaries at the time of retirement, resignation, or death. The payable amount under group gratuity insurance depends upon the length of service and salary of the employee.

Group Superannuation Insurance

Group superannuation insurance ensures that the employees receive a continuous stream of income even after their retirement. Both employees and employers contribute to the fund that the fund manager primarily manages.

Group Leave Encashment Plan

Group leave encashment plan is a scheme to fund the leaves of the employees. The leave encashment plans reduce the financial burden on the employer and help them fund the leave encashment liabilities payable to the employees.

Group Credit Term Plan

The bank or financial institution can offer group credit term plans to their borrowers. In case of the demise of the borrower, the policy helps the beneficiaries to lighten the loan repayment burden and reduces the liabilities on the family.

Group Travel Insurance

The group travel insurance policy is helpful for frequent travellers in groups. The employer can buy a group travel insurance plan to protect the group travellers for business purposes against unexpected events, such as travel cancellation, emergency medical situations, terrorism, and other consequences.

Group Hospital Cash Insurance

Under the group hospital cash insurance, the insured gets pre-defined cash benefits in case of hospitalization for at least 24 hours. These daily cash allowances help the insured manage their daily hospital expenses, ICU cover, and compensate for the loss of income.

Group Whole Life Insurance

Group whole life insurance is basically designed to provide lifelong coverage to the employees. This ensures that the beneficiaries remain financially secure in case of their demise.

Financial Security

The employees receive the life insurance coverage as a lump sum amount that can be used to cover immediate expenses and attain long-term financial goals.

Employee Retention

When the group insurance scheme offered by the employer provides sufficient life cover, the employee doesn’t need to buy a separate life insurance plan. Hence, the employees can reduce their additional liability and have a higher chance to stay at the workplace.

Cost-Effective

Group term life insurance plans are more cost-effective than buying individual life insurance policies in India. Since both the employee and employers contribute to the base group term life policy, they must pay a small percentage of the premium compared to the individual life policy.

Professional Fund Management

The professionals handle the fund under group insurance policies hence the employees do not need to worry about the mismanagement of the policy.

Simplified Underwriting

Underwriting is the process used by the life insurance company to evaluate the risk appetite of offering a cover. A group term insurance policy provides uniform coverage without any restrictions. Hence the underwriting process is comparatively hassle-free.

No Medical Test Required

Group term life insurance policy requires no medical examination before issuance. This helps every employee gain life cover benefits even after they cross the specified age or medical criteria required for an individual life insurance policy.

Employer Proposal

Employers with at least 10/ 50 employees in their organization can reach out to the life insurance company to buy a group life policy for its members. They can also compare and buy the life insurance policy for the group online.

Policy Underwriting

The life insurance company assesses the nature of the group and decides on the sum assured they are willing to offer to the employees. The employer takes the final decision on the respective premium and sum assured.

Issuance of the Group Policy

The policy issuance process starts once the employer accepts the group life policy proposal made by the life insurance company. Being the master policyholder, the employer pays the required premium amount.

Policy Renewal

Depending on the type of the group life insurance policy, contributing or non-contributing, the premiums are paid by the employees or the employer.

Policy Claim

In case an insured under the group term life insurance policy dies, the beneficiaries get the assured lump sum amount. The group term insurance plan continues for the remaining members without any disturbance. The employee and the family can also enjoy financial support even after the retirement.

Choose the Right Insurer

The life insurance companies in India offer various group life policies. While searching for a group life insurer, review their claim settlement ratio, solvency ratio, and customer support services.

Policy Coverage

The first step is to be sure of what coverage you are looking for your employees. Choose the suitable policy coverage after considering the policy inclusions, exclusions, additional, and optional benefits.

Premium Cost

Premium cost is the most important consideration when purchasing a group life insurance policy. The premium shall be affordable and should not stress your annual finances.

Add-on Benefits

You can enhance the policy coverage by selecting additional riders for the base group insurance scheme. The common group term life riders include

• Accidental death benefit
• Critical illness benefit
• Waiver of premium benefit