Group term life insurance policy is a benefit that many companies offer to their employees. It offers an affordable way for employees to secure the financial future of their family in case of an unforeseen incident. A group term life insurance policy provides coverage for a group of people, typically employees, under a single contract.
Being a part of a company that provides its employees with a group term life insurance policy can be a lifesaver. It is a great way to ensure that the employee's family is taken care of financially when they are no longer with them.
What is group term life insurance?
Group term insurance is a type of insurance policy that provides coverage for a group of individuals. Employers usually offer group term life insurance as a benefit to their employees. The primary purpose of this policy is to provide financial protection to the beneficiaries of the employees in case of their untimely demise. The coverage for this policy is temporary and ends after a specific term. The premiums for this policy are typically lower than other policies due to the group nature of the insurance. Group term insurance is a valuable benefit that can help provide peace of mind to employees and their families.
Features of group term life insurance
Group term insurance offers several features, including the following:
Death cover:
The primary feature of the group term life insurance policy is the death cover. This cover provides financial coverage to the nominee in case of the employee's unfortunate demise.
Gratuity benefit:
Gratuity benefit is another feature of a group term life insurance policy. It provides a lump sum payment to the employee who has served the company for a specified period.
Group credit protection plan:
A credit protection plan is a feature that provides financial coverage to the group if any of the members cannot repay their loans.
Comprehensive coverage:
It protects the group from multiple risks such as sudden death, accidental death, and critical illness.
Group term life insurance with employee benefits
Group Term Life Insurance is an essential employee benefit offered by many companies to ensure financial protection for employees’ families. It provides a lump-sum payment to the beneficiaries of an employee in the event of their sudden demise. The premiums for this policy are comparatively lower than traditional life insurance policies, which makes it a cost-effective option for employers. This company benefit instills a sense of financial security and peace of mind for employees, knowing that their loved ones will be taken care of if the unexpected happens.
Benefits of group term life insurance for employees
Here are some benefits of group term insurance that employees can enjoy:
Financial coverage:
Group term life insurance provides financial security to the employee's family when they need it the most.
Lower premiums:
Group term insurance premiums are cheaper than individual life insurance policies, as the cost of coverage is spread among the group.
Tax benefits:
Group term insurance provides tax benefits to the employee, as the premium paid for the policy is tax-deductible.
Add-ons:
Group term insurance policies provide add-ons such as critical illness cover and accidental death cover, which can benefit the employee and their family in case of any unfortunate event.
No medical check-up:
Employees can get coverage under a group term insurance policy without undergoing a medical check-up, which saves them time and money.
Benefits of group term insurance for employers
Here are some benefits of group term insurance for employers as well:
Reduces employee attrition:
Employers who offer group term insurance to their employees tend to have a lower attrition rate than those who do not. Employees feel more secure and valued when their employer takes measures to ensure their financial security.
Boosts employee performance:
A happier and more secure employee tends to be more motivated and productive, which can benefit the employer's overall performance.
Builds credibility:
Offering group term insurance can help build a company's credibility and reputation, which can attract new employees and customers.
How does group term insurance work?
A group term insurance policy covers a group of people under a single contract. The employer arranges for the insurance company to provide coverage for its employees. Typically, the employer pays the premium, and the employees are beneficiaries of the coverage.
The premium for a group term life insurance policy depends on the age, occupation, and salary of the employees. This premium is usually cheaper than that of individual life insurance policies. However, the coverage amount may not be as comprehensive as individual policies.
Eligibility criteria for group term insurance
The eligibility criteria for group term insurance include the following:
- Companies must have a minimum of 10 employees to be eligible for a group term life insurance policy.
- Employees must be between the ages of 18 and 65 to be eligible for coverage.
- Employees must be on the company's payroll to be eligible for coverage.
Steps to buy group term life insurance
Here are the steps to follow when buying group term life insurance.
Step 1: Identify the insurance company that offers group term life insurance policies.
Step 2: Collect all the necessary details about the company, including its reputation and financial stability.
Step 3: Analyse the features and coverage of the group term life insurance policy.
Step 4: Decide on the sum assured and the premium.
Step 5: Check the eligibility criteria for the group term life insurance policy.
Step 6: Submit the necessary documents to apply for the policy.
How to apply for term life insurance on Bajaj Finance Insurance Mall?
Here’s how you can apply for term life insurance plans on Bajaj Finance Insurance Mall.
- Visit the Bajaj Finance Insurance Mall
- Choose a life insurance plan and click on ‘Get Quote’.
- Enter personal and other details like how much you want to invest, name, mobile number etc.
- Enter a few additional details like your source of income, lifestyle etc.
- Upon entering all the details, you will view all plan details. Click on ‘Buy Now’ to proceed.
- Bajaj Finance representatives will call you back to explain the product details and help you buy a plan that suits you best.
Group term life insurance is a great way to ensure that employees and their families stay financially secure in case of an unfortunate event. There are multiple benefits of having a group term life insurance policy for both employers and employees. Companies that offer group term life insurance to their employees show that they care about their employees' financial security.
