Group Term Insurance

Group term life insurance is a type of life insurance in which a single policy covers a number of individuals or a group of people. The purpose of group term insurance is to provide the nominee or beneficiary with financial security in the event of death of the insured person within the policy's term.

Eligibility Criteria for a Group Term Insurance

To be covered under group term insurance, you will have to meet a few eligibility requirements set out by the insurer. They are:

Pre-requisites:The first and foremost requirement is to be an eligible group member. The group must share a common affinity and not be solely formed to buy term insurance. There might be other prerequisites laid down by the insurer. If you want to be covered under the group plan, you and other members of the group will need to meet these conditions.
Group size:The next factor is the group size. Depending on the type of group, the minimum size requirement varies.
➔ An informal group must have at least 50 members, like a residential society group, a group of club members, etc.
➔ A formal group must have at least 10 members, like the members or employees of an organisation, company, etc.
Age restrictions:The entry age to get coverage under the group term insurance is 18 years. Depending on the insurer, the maximum entry age can range from 65 to 85 years or more. Let us know the different types of group term insurance plans that you can purchase for your family.

What’s It Cover?

Natural Death
Health-Related Issues
Accidents

Your Details

Key Exclusion-

Suicide-Life insurance policies usually don't pay the death benefit for suicide that occurs within the first year of the policy.
Injury Caused by Dangerous Activities-If you're injured while engaging in an activity considered "dangerous" (such as skydiving), your beneficiary won't receive any money from the policy unless it's specifically listed as covered under its terms and conditions.
HIV/AIDS

Who Buy This Policy?

Employer-employee groups
Microfinance institutions
Banks and non-banking financial institutions.
Small medium enterprises (SMEs)
Non-Employer= Employee groups
Professional groups
Start-ups.

Why Choose Us?

Choosing a group term insurance plan, typically offered by an employer or association, provides significant benefits for both the organization and the individual members, primarily due to its cost-effectiveness, easy access to coverage, and minimal medical requirements.

Benefits for Employers/Organizations:

Employee Attraction and Retention : Offering valuable benefits like life insurance enhances the overall compensation package, helping to attract top talent and increase employee loyalty and retention rates.
Cost-Effective : Providing a single master policy for the entire group is more affordable and administratively simple than managing individual policies for each employee.
Tax Advantages : Premiums paid by the employer for the group policy are considered a business expense and are tax-deductible under the Income Tax Act, 1961.
Improved Morale and Productivity : A sense of financial security and feeling cared for by the employer can boost employee morale and job satisfaction, which often translates to higher productivity.
Fulfilling Statutory Obligations : Group insurance plans can be used by employers to strategically fund gratuity and other superannuation liabilities.
Customization Options : Employers can tailor plans to suit their workforce's specific needs, such as adjusting coverage based on salary or position and adding optional riders (e.g., accidental death, critical illness coverage).

Benefits for Employees:

Affordable Premiums : Since the risk is spread across a large group, the premiums for group plans are significantly lower than for individual policies. In many cases, the employer covers the entire premium cost.
Immediate Protection : Coverage often begins on the first day of employment or group membership, ensuring immediate financial security without a waiting period.
Financial Security : The policy provides a lump sum death benefit to the designated nominee, offering a financial safety net for the family in the unfortunate event of the insured's demise.
Tax Benefits : The death benefit received by the beneficiary is generally exempt from tax under Section 10(10D) of the Income Tax Act, 1961.
Convenience : The enrollment process is streamlined with minimal paperwork, and premium payments (if any) are often handled via payroll deductions.

Frequently Asked Questions (FAQs)

What is Group Term Life Insurance?▼

Group Term Life Insurance is a policy taken by a company or organization to provide life insurance cover to its employees or members. In case of death of aninsured person (due to any reason) during the policy period, the sum insured ispaid to the nominee.

Who can take this policy?▼

Companies / Firms , Factories / Shops , Startups / Corporates , Schools / Colleges & Associations / Trusts

Who gets covered under this policy?▼

Employees , Staff Members , Workers & Directors / Partners (if included by company)

What does this policy cover?▼

Death due to illness , Natural death , Death due to accident & Death due to disease