Group Term Life Insurance Plans, as the name suggests, are designed to offer life insurance to a group of people under a single policy. A group insurance policy is not restricted to merely employer-employee groups, but is also extended to others groups such as employer-employee groups like customers of banks, NGOs, professional groups, non-banking financial institutions, and microfinance institutions. Group term life insurance.
A group insurance policy for employees assures financial assistance and independence to the beneficiaries of the concerned employee, in the event of his or her death. It offers multifarious benefits, from uniform cover to all, to ranked covers to various grades of members. Some group insurance schemes also provide covers for outstanding loans to a group of borrowers, while some come with critical illness and disability benefits.
Here are the benefits of Group Term Life Insurance plans to employers as well as employees:
1. Default Insurance Cover
A group insurance policy provides insurance cover to members by simply being part of the group. It ensures a basic insurance to cover to those who do not have a personal life insurance policy.
2. Gratuity Funding
Employers are aided with a systematic method of building up funds for their future gratuity liability towards the employees. A group insurance policy assists the employers with the same, along with providing life insurance cover to employees, with greater ease.
3. Tax Benefits
Group Term Life Insurance plans offer tax benefits to both employers and employees. As per prevailing Tax Laws, Death benefits to employees are exempt from tax under Section 10(10D) of Income Tax Act. Moreover, group insurance plans are doubly effective - in employee welfare as well as retention.
4. Customisable to suit employee needs
Group insurance policy coverage can be extended with add-ons like education allowance, repatriation allowance, accidental death and more, thus covering a multitude of benefits along with the base cover.
5. No medical check-ups
Employees are relieved from the hassle of going through medical check-ups under Group Term Insurance Plans.
6. Cost Effective
Since a group plan entails insurance cover for many people, its premium is much lower as compared to individual policies.
7. Worldwide Coverage
Group Term Life Insurance policies offer worldwide coverage to policyholders. Even if the insured dies in a foreign land, the nominee is entitled to receive the policy payout benefits in India.
Undoubtedly, a group insurance policy is a smarter way to avail insurance protection against multiple risk factors, let alone life. Start by assessing the right group plan.
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Disclaimer: Life Insurance coverage is available in this product. It is a group insurance plan which provides only death benefit and no maturity or surrender benefit. For more details on the risk factors, terms and conditions, please read the product sales brochure carefully before concluding a sale.