A Group Term Insurance Policy is a type of life insurance plan that provides coverage to a group of individuals under a single policy. This policy is typically offered by employers, professional organizations, or associations to provide financial security to their members' families in case of an unfortunate event. It ensures that the nominee of an insured member receives a lump sum payout in case of death during the policy tenure.
A group term insurance policy is usually purchased by an employer, organization, or association for their members or employees. The organization pays the premium on behalf of the insured members, and the policy provides a fixed sum assured to the nominee in case of the member’s demise.
Group term insurance is cost-effective compared to individual term insurance plans as the risk is spread across multiple members.
The nominee or family members of the deceased receive a lump sum payout, ensuring financial stability.
The coverage amount can be customized based on factors such as salary structure, hierarchy, or a fixed amount for all members.
In most cases, the employer bears the premium cost, making it a valuable employee benefit.
Employers and employees can avail of tax deductions on premiums paid under Section 80C of the Income Tax Act.
Group term insurance policies generally do not require members to undergo medical tests, making it easier to obtain coverage.
Organizations can opt for add-ons such as accidental death, disability, and critical illness riders to provide comprehensive coverage.
Offered by companies to their employees, this policy provides financial security to employees' families.
This type of policy covers loan liabilities in case of a borrower’s death, ensuring the family does not face financial burdens.
Combines life insurance benefits with a gratuity scheme to provide employees with additional financial security.
A retirement benefit plan that helps employees build a corpus for post-retirement life.
Ensure that the sum assured is adequate to provide financial security to members’ families.
Compare premium costs across insurers to find a plan that fits within your organization’s budget.
Choose an insurer with a high claim settlement ratio to ensure hassle-free claim processing.
Check for exclusions such as suicide, pre-existing conditions, or risky professions.
Look for policies that offer riders and additional benefits to enhance coverage.
Assess the number of employees or group members and decide the coverage amount based on risk assessment.
Use online comparison tools to evaluate different insurers' offerings in terms of benefits, coverage, and premiums.
Select an insurer with a good reputation, high claim settlement ratio, and excellent customer service.
Talk to the insurer about add-ons like critical illness coverage, disability riders, or accidental death benefits.
Once satisfied with the plan, complete the documentation and purchase the group term insurance policy.
