As any good employer knows, the success of the company can be directly traced back only to the happiness and effectiveness of its employees. An excellent way to gain employee trust and increase morale is to provide them with a better insurance plan than the one mandated by the government. HDFC Life Insurance Company seeks to fill this need with their Group Insurance Plan.
Eligibility Conditions for the HDFC Life Group Term Insurance Plan
|Minimum Entry Age||
|Maximum Entry Age||
|Maximum Maturity Age||80 years old.|
|Maximum Members per policy||
Key Features of the HDFC Life Group Term Insurance Plan
|Plan Type||Group Term Insurance Plan.|
|Premium Paying Term||One year renewable premium.|
|Policy Term||One year, renewable.|
The premium for the unexpired term (of the members who are discontinuing the policy) minus deductions for expenses, commissions, taxes, and levies
Will be payable if the plan is surrendered before the end of the policy term. Individuals who opt out of the group coverage can convert the policy into an individual life insurance policy and have continued coverage under the same (till the end of the term of the group insurance policy).
|Grace Period||All overdue premiums must be paid within 15 days after the initial premium has been paid for non-annual instalment policies. Failure to do so will result in the policy lapsing.|
|Riders||Additional coverage can be sought through the purchase of the following additional riders:
Minimum of Rs.5,000 per employee.
No cap on maximum sum assured.
Features and Benefits:
- No medical examinations required before taking on this life insurance policy, up to the amount prescribed in the “Free Cover Limit” which depends on the Sum Assured option chosen, and the group size.
- Premiums can be borne by either the employer, or the employee, or both in an agreed proportion.
- Flexible premium paying options – half-yearly, quarterly, or monthly.
- Flexibility in choosing the sum assured for different employees – the employer can choose to provide all employees with the same insurance coverage, or different levels of coverage for different positions in the company / grade of the employee / salary drawn, etc.
- Adaptable plan structuring means that new employees joining the company can be seamlessly integrated into the scheme, and employees that are leaving for whatever reason can be removed from the policy easily.
- Members that join halfway through a policy year have a provision which makes them eligible for coverage till the end of a year from the date they begin coverage under the policy.
- Service tax will be charged as per applicable tax laws.
- Employer benefits:
- Strong retention and morale building tool.
- All group members can be easily covered under one single policy.
- High level of cover at low premium, cost effective and efficient.
- Adaptive policy that allows for members to be added and removed with minimal hassle.
- Employee benefits:
- Adequate life insurance coverage as part of employment.
- No medical tests required (till free cover limits).
- Cover for housing loans and vehicle loans.
- The premiums that are paid by the employer are not considered as perquisites.
- Additional cover can be extended to the spouse of the insured member.
- Easy and simplified processes for enrolment and claiming benefits.
How the Plan Works
Companies take on this term insurance policy to provide insurance coverage benefits to their employees, so that their dependants can be protected from financial problems in the event that an earning member of the family is no longer able to earn.
The company buys the policy and pays the required premiums (including or excluding rider premium) and keeps the policy active for the employees to use when it becomes necessary.
Should a claim come about for processing, the company will intimate the same to HDFC Life Insurance Company, and the insurer will handle all processes relating to claims and settlement with the employee / dependants of the employee who generated the claim.
- Accidental Death Benefit Rider: Upon the payment of a nominal additional premium, the Accidental Death Benefit Rider extends coverage and adds to the benefit amount payable in the unfortunate event that the claim must be paid out to a policyholder who dies due to accidental causes.
- Total Permanent Disability Rider: Upon the payment of a nominal additional premium, the Total Permanent Disability Rider comes into effect, which pays out an additional sum assured to policyholders whose claims arise as a result of being rendered totally and permanently disabled.
- Total Permanent Disability and Partial Disability Benefit Rider: Upon the payment of a nominal additional premium, the Total Permanent Disability and Partial Disability Benefit Rider comes into effect, which pays out an additional sum assured in the event that claims arise due to the total or partial disability of the policyholder as a result of events described in the policy wordings.
- Critical Illness Benefit Rider: Upon the payment of a nominal additional premium, the Critical Illness Benefit Rider comes into effect, which pays out additional benefits on the contraction / diagnosis of a critical illness as mentioned in the policy wordings.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017