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Group Term Insurance Plans

If you are a working employee, you can avail a group term insurance plan offered by your employer and ensure that the future of your loved ones is safe and secure as they will receive a death benefit in case something happens to you.
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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.

Other Life Insurance Plans Popular Life Insurance Plans _3

What Is Group Term Life Insurance Policy? Reviews

Page 1 of 50 1 2 3 4 5
  • Bajaj Allianz Life Life Insurance
    "Can do Better"
    0.5 4.0/5 "Great!"
    The coverage value is fine in Bajaj Allianz and benefits are good. I didn't interact much with the agent but at the time of purchasing the policy they have coordinated very well. The policy coverage is minimum, the tax benefits and financial security for unforeseen events is there.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 18, 2019
  • LIC Life Insurance
    "Must policy for every Indian"
    0.5 5.0/5 "Blown Away!"
    LIC is a very good policy in India. I cannot compared the LIC company with any other company in terms of best services and the claim ratio. After the maturity, in the same day the amount will be credited in my account and i don't need to contact anyone. They are providing all of kind of policy which suits for all kind of aged people thats the beauty of LIC.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 18, 2019
  • LIC Life Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I had taken this LIC Jeevan anand insurance policy a long time back and i had been paying the premium half yearly. I had been paying the premium online and the payment method has been convenient. It has been a good policy and it is suggestible to others.
    Was this review helpful? 0
    , navi mumbai
    Reviewed on Jan 18, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    5 years back, i have purchased the life insurance policy with Life insurance corporation of India. The plan name is jeevan anand and its a good policy to take. I forgot to make the payment on time hence the policy got lapsed. The service of LIC is good. They have sent a regular notification regarding the premium payment.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 18, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    Based on the benefits and returns i have chosen this life insurance corporation of India . I am satisfied with the amount which am making for the policy . Am making the payment yearly through online with tenure period of 20 years . This policy cover accidental benefits and critical illness benefits . Overall am happy with it.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 18, 2019
  • LIC Life Insurance
    "Benefits should be increased"
    0.5 4.0/5 "Great!"
    I have not much interacted with the customer support of LIC, but their agents are professional. In Jeevan anad policy the maturity value is lesser for 15 years. I make the premium of Rs. 30,000 per annum. After the tenure period I will amount around Rs 4 lakhs. LIC is providing financial security for unforeseen events but need to concernate on benefits.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 18, 2019
  • LIC Life Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    Name of the LIC policy is Jeevan Ankpur and tenure is 16 years. The yearly premium is 5061 rupees which I pay through net banking or cheque. The customer service and response was excellent. The benefits are good, it includes accidental or incase of death they will provide sum assured of 10% every year up to 18years of my daughter.
    Was this review helpful? 0
    , indore
    Reviewed on Jan 18, 2019
  • LIC Life Insurance
    "Good benefit"
    0.5 5.0/5 "Blown Away!"
    My life insurance policy was taken with LIC. The payment option is very good. I can make the payment through online banking, credit card, cash and cheque. In 2017, i have purchased this policy. Total term period of the policy is 21 years. I'm satisfied with the sum assured amount. Since its a reputed company and claim process is easy hence i have selected Life Insurance Corporation of India.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 18, 2019
  • LIC Life Insurance
    "Trusted Policy with LIC"
    0.5 5.0/5 "Blown Away!"
    I have so many policy, the money back is good based on the policy I took the loan. LIC is good there is no issue Its a trusted one. They are very transparent, every 5 years they gave me money bonus and policy cover is good the payment option is very convenient.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 18, 2019
  • LIC Life Insurance
    "Trusted Policy with LIC"
    0.5 5.0/5 "Blown Away!"
    I have so many policy, the money back is good based on the policy I took the loan. LIC is good there is no issue Its a trusted one. They are very transparent, every 5 years they gave me money bonus and policy cover is good the payment option is very convenient.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 18, 2019
  • Max Life Insurance
    "Good for tax saving"
    0.5 4.0/5 "Great!"
    AXIS bank suggested Max life its good for the income tax benefits under 80c section, the premium amount is around Rs. 50,000 for 6 years term. On time I got the policy copy, the payment option is good, I need to wait for 20 years but pre closure option is available.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 18, 2019
  • LIC Life Insurance
    "Must Have"
    0.5 5.0/5 "Blown Away!"
    Its is feasible and I can get the loan based on the policy coverage. I took the Jeevan anand policy probably I make the premium around Rs. 15,000 per year it has term of 20 years, Almost I paid it for 15 years , remaining 5 years to go. LIC Is good for tax benefits.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 17, 2019
  • SBI Life Life Insurance
    "Excellent Policy"
    0.5 5.0/5 "Blown Away!"
    I had taken this insurance policy a long time back, the services which they had been very good. The premium amount has been nominal and has not been high and the payment method has been simple. I can make the payments using my credit card and there has not been any hassle faced with the services of them.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 17, 2019
  • ICICI Prudential Life Insurance
    "worst policy ever"
    0.5 1.0/5 "Really Bad"
    I am not aware that i am opening insurance with icici while opening my salary Acc. But not they are not closing it . I just feel like i made a big mistake by considering icici for my salary account . Think again if you really think icici is a good choice .
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 17, 2019
  • LIC Life Insurance
    "Excellent service"
    0.5 5.0/5 "Blown Away!"
    I have been holding my life insurance with Life insurance corporation of India, i took my life insurance as the agent of that and he had suggested me good policy explain me well about the coverage and the premium amount they have charged me was nominal they have given me up to 3,000 , it is in monthly basis, and the premium amount gets auto debited from my account.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 17, 2019
  • LIC Life Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have been holding my life insurance with Life insurance corporation of India from long time, and the agent of LIC was know person so he suggested me best policy and there premium amount they have given me was nominal , the premium amount i use pay on yearly basis,and there is no hidden charged , and i pay premium through auto debit .
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 17, 2019
  • LIC Life Insurance
    "Excellent service"
    0.5 5.0/5 "Blown Away!"
    I have been holding my life insurance with Life Insurance corporation of India,i took jeevan anand policy , and the agent is my brother , he had explained me clearly and advise me which insurance is good for me and i pay premium on half yearly basis and monthly basis as i have two policy, i use to pay through off line mode.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 17, 2019
  • LIC Life Insurance
    "Best service"
    0.5 5.0/5 "Blown Away!"
    I have been holding my life insurance with Life Insurance corporation of India,i took life endowment policy , and the agent had properly explain me out the plan benefits and policy coverage , he had explained me clearly and advise me which insurance is good for me and i pay premium on quarterly basis,i use to pay premium up to 14000 through on line, i have two policy second policy premium i use to pay 25,000 as an yearly basis,and there patrol is good,they use to update me if any policy they use to update me, i use to pay through on line mode, through neft transfer.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 17, 2019
  • LIC Life Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have been using my life insurance with Life insurance corporation of India, i have taken policy for my family , i have paying premium on half yearly basis up to 65,000 they have charged me , it is nominal for me , i use to pay through off line or on line mode,it depends according to my time, it i want to pay in emergency purpose i need to pay through on line,if there is delay in paying premium they use to charged me up to 230 rupees.
    Was this review helpful? 0
    , lucknow
    Reviewed on Jan 17, 2019
  • Bharti Axa Life Life Insurance
    "Good for nominee savings"
    0.5 4.0/5 "Great!"
    Reason to chose Bharthi Axa, my friend working there hence I took the policy. I have taken term insurance with the coverage of Rs.23 lakhs , I can add multiple nominees, I make the premium of Rs.95,000 its for per annum. It has term of 10 years, now a days they have different options too.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 17, 2019
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