• Group Term Insurance Plans

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    Group term life insurance policy refers to the insurance coverage that is provided to a group of people. Group term life insurance schemes offer financial independence to the concerned employee’s family in the event of death. It is intended to provide monetary guarantee to the beneficiary of the covered under the group term life insurance plan in the case of death of the insured.

    Group term life insurance schemes have become a fundamental constituent in benefit packages presented to employees by employers. In fact, most fraternal providers offer group term life insurance to its members.

    Life insurance is an essential product for persons who have financial dependents.

    Who is Eligible for Group Term Life Insurance Policies?

    Group term life insurance policies are offered to the following sections of people-

    • Employer-employee groups
    • Non employer- employee groups
    • Banks
    • Professional groups
    • Non-banking financial institutions
    • Microfinance institutions

    There are many varieties of group term life insurance policies.

    Following are some examples-

    • Some plans may offer uniform covers to all of its members
    • Some plans offer ranked covers for various grades of members
    • Some schemes provide cover for outstanding housing loans, car loans, etc.
    • Some schemes have riders like critical illness benefits, accident benefits, disability benefits, etc.

    What is The Nature of a Group Term Life Insurance Policy?

    Following is the nature of a group life insurance plan-

    • It is awarded to all members of a certain group contingent on certain basic conditions of insurability
    • Medical reports need not be produced
    • Maturity value is not provided
    • Scheme covers death

    General Features of Various Group Insurance Schemes

    Premium: Premium on group term insurance can be paid entirely by the employer.

    Members under the scheme are also allowed to make contributions towards the premium of the scheme.

    Double Accident benefits:- For an extra premium, double accident benefit is provided to the insured in the event of an accident.

    This comes excluding the permanent disability benefit.

    How does a Group Life Insurance Plan Work?

    Following is the flowchart group life insurance plan-

    • A group administrator is issued a master policy upon which he pays an initial premium.
    • This initial payments covers all the members of the group for a tenure one year.
    • An option to choose the sum assured is provided to the members of the group. This sum can either be a lump sum amount or could be linked to salary account or a loan account, etc.
    • Once the policy holder has paid the premium, the members are covered for a tenure of one year from the date of commencement of the policy.
    • The group life insurance plans are annually renewable.
    • The premium is charged based on the alterations in the size and age allocation of the concerned age group.

    What Are the Benefits of Group Term Life Insurance Schemes to Employers?

    • Group term life insurance policies are beneficial to employers just as much as they benefit employees.
    • Employers are aided in funding their gratuity liability with ease under the group term life insurance policies. Gratuity funds are built strategically to fulfil subsequent gratuity payments, thus, reducing the burden on the employer.
    • Returns on the funds will be earned according to the performance of the funds chosen by the client.
    • Group term life insurance policies in India are more economical because administering schemes on group basis has a lower cost.
    • Funds that perform better will earn increased returns consequently decreasing the expense to the employer.
    • Some plans offer employers with both life insurance covers along with gratuity benefits.

    What Are the Benefits of a Group Term Insurance Plan to Employees?

    Following are the benefits of a group term insurance plan to employees-

    • Employees are assured of financial assistance being extended to their families in the unfortunate event of their demise, critical illness, etc.
    • Employees can benefit from the inconvenience of medical tests be done away with until their free cover limits.
    • The premiums paid by their employers are not treated as perquisites.
    • Employees can enjoy death benefits that are exempt from tax under Section 10(10D)
    • Easy administration by way of simple documentation
    • Can be customised to meet niche needs of the employees enrolled
    • Offers security to the family of the insured
    • Safeguards the insured’s financial interest

    Features of Group Term Life Insurance Plans

    Group term life insurance schemes have a lot of attractive features which make them ideal for employee benefit packages. Following are few of the many features of group life insurance schemes-

    • Members can be added at any point of the year
    • A pre decided sum assured is paid to the beneficiary of the insured in the event of death
    • Add on covers are provided as riders that insure for critical illnesses, accidental deaths, disabilities, etc.
    • Application process is quick and easy
    • The minimum size of the group is 50 members
    • Terminal illness is provided as a built-in benefit
    • Cheaper than individual policy cover
    • Employees can enjoy the benefits they are entitled to while maintaining a healthy and strong connect with the employers

    Frequently Asked Questions about Group Life Insurance Policies

    1. What is the minimum age for enrolling into a group term life insurance plan?
    2. The minimum age for enrolling into a group term life insurance plan is 18 years of age.

    3. What is the maximum age to enroll into a group term life insurance plan?
    4. The maximum age to enroll into a group life insurance plan is 69 years.

      The maximum age at the time of expiry of the policy is 70 years.

    5. What is the tenure of a group term life insurance plan?
    6. The tenure of a group term life insurance policy is 1 year.

    7. What is the minimum sum that is assured under the group term life insurance scheme?
    8. The minimum sum that is assured under the group term life insurance scheme is Rs.1,000.

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    What Is Group Term Life Insurance Policy? Reviews

  • Page 1 of 50 1 2 3 4 5
    • LIC Life Insurance
      "Good Benefits policy"
      0.5 5.0/5 "Blown Away!"
      LIC provide good return and its more secured, they have good endowment plan it has good return, the premium is good enough compared to normal plan it has 10 to 20% extra on endowment policy it has good benefits, it gives good sum assured. tax benefits, financial security unforeseen events.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 20, 2018
    • Aegon Life Life Insurance
      "Good for Me and My Family"
      0.5 5.0/5 "Blown Away!"
      Last three month back I purchase Aegon life through online channel. The plan benefits are good, I get the maturity benefits of Rs. 34 lakhs after 25 Years . In case of any loss, my nominees get the amount of Rs. 7.50 lakhs. I make monthly premium around Rs. 5000 monthly month its fine.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Trusted Insurance Company"
      0.5 4.0/5 "Great!"
      LIC is a good company, but they don't have proper customer service to give reminder call on the premium. Plan benefits are average than other company like Bharathi Axa, TATA Birla etc. I took Jeevan bheema plan it has the tenure of 10 years , it has the premium Rs. 5000 in a year, I get sum assured value around 5 lakhs.
      Was this review helpful? 0
      , kolkata
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 5.0/5 "Blown Away!"
      Life Insurance Corporation Of India is a Government handling policy for customers ,Everything is good with LIC nowadays the on line facilities are provided with this insurance recommended for customers to pay the money in on line itself so we no need to call the customer care were everything is done through the on line using our Mobile itself , I have been paying the policy money since from 2007 which is running successfully still now,Overall this insurance is good to use.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Good insurance"
      0.5 5.0/5 "Blown Away!"
      I have taken a life insurance policy from LIC. It is a cash back policy. I have taken this policy through agent. The representative explained about the benefits clearly. The policy coverage and plan benefits are satisfactory. I pay 4500 rupees quarterly through cash or net banking.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Excellent policy to use"
      0.5 5.0/5 "Blown Away!"
      I have got the Life insurance policy for my child and it was started from the month April. This policy has the tenure of 21years. I pay the premium amount of Rs,2700per month. The plan benefits and the policy coverage is better with this policy .
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Better Jeevan anand policy "
      0.5 5.0/5 "Blown Away!"
      Holding the Jeevan anand Life insurance policy for more than 2 years from the LIC. The customer support service is good with the LIC and they have better plan benefits and the payment options. I pay the premium amount through ECS which is easy and helpful.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 20, 2018
    • HDFC Life Life Insurance
      "Average service"
      0.5 3.0/5 "Satisfactory"
      Hdfc Life insurance service is good. I have taken it for the term period of 35 years and I have one policy with Hdfc Life. They use to update me with new schemes and offers through email. The documentation part has been smooth. It is a average service from Hdfc Life insurance service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • SBI Life Life Insurance
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I also have a Life insurance service from Sbi Life. The service is good with Sbi Life. The staffs are friendly in approach and the documents procedure was been smooth with Sbi. They use to intimate regarding new schemes and offers,it is a average service Sbi Life insurance service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have a Life insurance service from Lic, I have four policy's with Lic. The schemes and offers are good with Lic and they use to update me regularly regarding their new schemes and offers. The payments are generally through online,it is a average service from Lic.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Average service"
      0.5 3.5/5 "Pretty good"
      The service of Lic is good, I have taken three policy with Lic. It was been very long time I have taken the life insurance service from Lic. But I am disappointed that sometime there is no online payment option is available. I am also not interested about the new schemes and offers,it is totally a average service from Lic.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • ICICI Prudential Life Insurance
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have a term insurance from Icici,the service is good with Icici. I have taken two policy with Icici. They use top update me regularly with the new schemes and offers,I use to get intimations through sms and email. The payments are generally through online,it is a average service from Icici life insurance service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Good insurance"
      0.5 5.0/5 "Blown Away!"
      I took 2 to 3 life insurance policies from LIC. These policies are taken directly from the office. I have cash back and long term policy. I have never contacted the customer service but not faced any issues. The online portal was very easy to do the payments. I pay annually around 60 to 80K .
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Good insurance"
      0.5 5.0/5 "Blown Away!"
      I am using the LIC service and its very good. I am satisfied with the policy coverage and the plan benefits. I have several policies for the entire family. All are long term policies. I am paying the premium for annum sum around 80K to 1L. The payment was done quarterly through cheque as well as ECS.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Feb 20, 2018
    • LIC Life Insurance
      "Better"
      0.5 4.0/5 "Great!"
      Life Insurance Corporation is Good service for customers my LIC policy tenure period is till 20 years but I have already done with 5 years remaining 15 years is left with me to pay the insurance.The payments and the Amount given is affordable to pay, Since the service is rendered from the Government Of India this LIC policy is a Better one.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 19, 2018
    • LIC Life Insurance
      "Looters"
      0.5 0.5/5 "Unacceptable"
      LIC is just looting common indian people in the name of life insurance. With LIC you can't invest your money in your way. Worst ever customer service. Their staff will behave as if you borrowed something from them. Please avoid it as much as possible.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Feb 19, 2018
    • LIC Life Insurance
      "Good"
      0.5 5.0/5 "Blown Away!"
      I am having the life insurance policy with the Life Insurance Corporation of India and the customer service is good one with them. I would like to say that the overage value is good one with the Life Insurance Corporation of India.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 17, 2018
    • SBI Life Life Insurance
      "Looking for better feature and service"
      0.5 3.0/5 "Satisfactory"
      Performance of people they wont helpful, they don't realize whom they are dealing with. If anything happens also no body is there to help me. SBI life is average, I have tenure of 15 years, premium monthly 1500. I will maturity benefits lump sum amount its nominal, tax benefits, life cover accidental cover
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken Life Insurance with LIC,the premium amount is 3800.i make direct payments at the branch.The policy coverage amount is one lakh, i feel its very less.The policy is for 15 years,I submitted documents via an agent.Plan name is Jeevan anand.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 16, 2018
    • LIC Life Insurance
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken a Life Insurance with LIC.The premium amount is 13800 in a year.The policy coverage is three lakhs,I make direct payments at the branch.I have no claim experience,its been nine years since i have taken this policy.The policy is for 15 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 16, 2018
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