What Is A Group Term Life Insurance?
Group term life insurance is a type of term insurance in which a single contract is issued to cover numerous people. The most common group is an organization where a written agreement is issued to the employer who then offers insurance as a benefit to employees. Many employers offer an initial level of group coverage at no cost, as well as the option of buying additional insurance and coverage for employees' children and spouses.
Benefits Of Group Term Life Insurance In India
Benefits of Group term life insurance in India are:
- Default Insurance Cover
A group insurance policy gives insurance coverage to members just for being a part of the organization. It provides basic insurance to protect those without personal life insurance coverage.
- Saving for Gratuity
Using a planned strategy, employers can set away funds for future gratuity payments to employees. Group insurance makes it simpler and also offers life insurance protection.
- Tax Benefits
Employers and employees both benefit from group-term life insurance programs. Section 10(10D) of the Income Tax Act of 1961 makes death benefits tax-free. Group insurance plans benefit employees and helps retain them.
- Customizable to suit employee demands
Group insurance policies can be customized to meet the specific needs of employees. Additional benefits, including as education allowance, repatriation allowance, and accidental death coverage, can be added to the base cover, giving a wide range of advantages.
- No medical check-ups
Employees do not have to undergo medical check-ups when opting for Group Term Insurance Plans. This saves them the trouble and discomfort of medical checkups.
- Cost-Effective
Group insurance plans are affordable because they cover a large number of people. When compared to individual insurance policies, group policies typically have cheaper premiums, making them more affordable for employees.
Features of Group Term Life Insurance Plans
The main features of group term life insurance plan are:
- Contract Master
Group life insurance is a sort of insurance that is provided to employees regardless of whether they have individual insurance or not. It is a master contract in which the organization purchases a policy depending on the number of members and the sum insured amount decided.
- Contributory and Non-Contributory
In the contributory plan, employees contribute a part of the premium, while the company covers the remaining amount. In a non-contributory plan, the employer pays the entire premium.
- Affordable
Group life insurance is less expensive than individual life insurance. This is because the insurance firm combines various expenses such as administration, operation, and renewal into a single master policy.
- Tenure
The policy is typically active for one year. After then, it must be renewed each year.
- The payout for the Death
If an employee is killed in an accident, the group life insurance pays the full insured sum to the nominee specified by the deceased individual.
Group life insurance provides financial security to employees and their families. It is a low-cost approach for businesses to ensure the well-being of their employees.
Choose Okbima - Your Trusted Group Term Life Insurance Provider
Okbima is the best place to purchase group term insurance plans because:
Quick, simple, and trouble-free
You can quickly, effortlessly, and hassle-free file an insurance claim on our website. Simply submit the necessary paperwork to have your claim processed.
24*7 Customer Support
We are accessible to you via our online platform 24 hours a day, 7 days a week, which also makes the entire investing process more transparent and efficient.
Empathy
At okbima.com, empathy is our guiding principle as we think insurance should prioritize customers' needs and well-being over purely statistical data.
Group Term Life Insurance Eligibility Criteria In India
In order to join this, you need to be at least 18 years old but not more than 69 years old. The cost varies depending on your age, and you may be eligible for tax breaks. You can add extra benefits to your plan, such as protection against accidents, serious diseases, or permanent disability.
These offers are available to a variety of people
- Individuals who work for an organization and their employer provides the insurance
- People who are not employed by a corporation but wish to get an insurance
- Banks can also provide similar plans to their consumers
- Other financial institutions that are not banks may also provide these programs
- Microfinance institutions can also offer these insurance products
Documents to File for Group Term Life Insurance Plan
Documents Required for a Group Term Life Insurance Plan:
- Application form: Complete the form with the beneficiary's information and your personal information.
- Proof of Age: To prove your age, provide a document such as a birth certificate or passport.
- Work Verification: Submit a letter from your employer confirming to your work status and group insurance plan eligibility.
- Medical History: Complete a medical questionnaire to disclose any pre-existing medical issues.
- Beneficiary Designation: Identify the names and relationships of your designated beneficiaries who will receive the insurance payouts.
- Consent document: Sign a consent document allowing the insurance company to examine your medical records if necessary.
Top Five Group Term Insurance Companies In India
Group-term insurance companies determine the cost of premiums and coverage based on factors like the size of the group, the age of the members, their health conditions, and the chosen policy features. A group-term insurance policy gives financial protection to a group of people. Here are the top five group-term insurance firms in India:
- Life Insurance Corporation of India (LIC): LIC offers comprehensive group term insurance products with customizable features and low prices.
- ICICI Prudential Life Insurance: ICICI Prudential Life Insurance offers group term insurance products that protect group members against unexpected events.
- HDFC Life Insurance: HDFC Life Insurance provides group term insurance plans with benefits such as financial security and coverage for a large number of people.
- SBI Life Insurance: SBI Life Insurance offers group term insurance solutions to satisfy the demands of a variety of organizations.
- Max Life Insurance: Max Life Insurance provides group term insurance products with features such as coverage for group members and financial security.
How To Renew Group Term Life Insurance In India?
Read the steps mentioned below to renew group term life insurance in India:
- Understand the Importance: Group term life insurance insures a group of people under a single policy. It gives financial assistance to the families of insured members in the event of a tragic event such as death. Renewing this insurance is important to keep the insurance coverage active.
- Contact Your Insurance Provider: Contact the insurance company that issued the policy. They will guide you through the renewal procedure and give you all of the relevant information.
- Fill out the Renewal Form: Fill out the renewal form provided by the insurance company. Give them details like the policy number, group information, and any changes in-group members.
- Pay the Renewal fee: You must pay the renewal fee to renew the policy. The insurance company will advise you of the amount and payment alternatives available, such as online payment or visiting their office.
- Submit the Form and Payment: After filling out the form and making the payment, you'll need to submit them to the insurance company. They will process the renewal and issue a renewed policy document.
How To File A Group Term Insurance Claim?
To file a group term insurance claim, you must follow the following steps:
- Notify the Insurance Provider: If the insured member dies, the first step is to notify the insurance company that provided the group term insurance policy. To start the claim procedure, contact their customer service or claims department.
- Gather Required Documents: The insurance company will request specific documents to process the claim. These may include the original policy paperwork, the insured member's death certificate, the claim form (supplied by the insurance company), and any extra papers they need.
- Complete the Claim Form: Fill out the claim form with complete and accurate information. The form may request information such as the policy number, personal information of the insured member and beneficiaries, cause of death, and other relevant details.
- Submit the Claim Form and Papers: After completing the claim form, submit it to the insurance company along with the necessary papers. To avoid any delays in the claim settlement procedure, ensure that all relevant documents are delivered.
- Follow Up with the Insurance Company: Keep track of the claim process by contacting the insurance company on a regular basis. They will provide updates and can ask for more details if needed.
