• 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
    • HDFC Life Life Insurance
      "Fair service"
      0.5 2.0/5 "Expected more"
      I've a health insurance policy with the HDFC life. I pay a premium of 8000 per year via an agent. I am not aware about the in depth features of the policy. So far the experience has been good with them. It is a recommendable insurance policy to have.
      Was this review helpful? 0
      , pune
      Reviewed on Jun 14, 2018
    • Kotak Life Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance with Kotak Life from last 2 years and it is a long term policy. I am happy with the returns and tax benefits of this policy. I pay my premium once in 3 months and i am convenient with the payment options. The maturity period for this policy is 10 years.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jun 14, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a LIC policy from last 4 years and it is a long term policy. The tenure of this life insurance policy is 20 years. I pay my premium once in a year through direct payment and the payment options are convenient for me. I am happy with coverage and returns of this policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 14, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I have a life insurance policy with LIC from last 10 years and it is a long term policy. I am satisfied with the coverage and benefits of this policy. I pay my premium once in 3 months by cheque and i am convenient with the payment options. The maturity period for this policy is 15 years.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jun 14, 2018
    • ICICI Prudential Life Insurance
      "Value for money"
      0.5 4.0/5 "Great!"
      I am using ICICI prudential life insurance company from the last three to five years of time. I would like to say that the coverage value is an average one and the customer service is fine one too with the ICICI prudential life insurance company.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jun 14, 2018
    • LIC Life Insurance
      "Scope for improvement"
      0.5 3.0/5 "Satisfactory"
      I am having the life insurance policy with the Life Insurance Corporation of India. I would like to say that the customer service is not good one and the coverage value is not good too. There are no advantages with them.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jun 14, 2018
    • LIC Life Insurance
      "Best"
      0.5 4.5/5 "Excellent!"
      I have got the life insurance policy with the Life Insurance Corporation of India. I have not used their web portal as such. Coverage value is good one with the Life Insurance Corporation of India, also the premium value is better one with them.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 14, 2018
    • LIC Life Insurance
      "Good money back plan "
      0.5 5.0/5 "Blown Away!"
      I am having the Money back life insurance policy for the past 10 years. The customer support service and the response is good with the LIC. I pay the premium amount of Rs,5000 to this policy every year once. This policy has the tenure of 20years. I got the money back in 4 years once.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 13, 2018
    • LIC Life Insurance
      "Good child plan "
      0.5 5.0/5 "Blown Away!"
      I got the Jeevan Tharan life insurance policy around 3 years ago. The customer support service and the response is good with the LIC and this policy will get matured once my child turns to 18years. I pay the premium amount of Rs,15,000 to this policy in every once.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 13, 2018
    • LIC Life Insurance
      "Good service"
      0.5 5.0/5 "Blown Away!"
      The Life insurance policy has been taken by me around 4 years ago. This policy has the tenure of 15years. The customer support service and the response is good with the LIC. I pay the premium amount of Rs,28,000 in every year once. i am satisfied having this policy.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 13, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a life insurance policy with LIC from last 3 years and it is a long term policy. I am happy with the returns and tax benefits of this policy. I pay my premium once in a year through online and the payment options are convenient for me. The maturity period for this policy is 20 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 13, 2018
    • Aegon Life Life Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      I hold the AEGON LIFE term insurance policy around a year ago. The customer support service and the response is good with the AEGON LIFE and I get good plan benefits and the policy coverage with this policy and I am satisfied using this AEGON LIFE insurance policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 13, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I have been using LIC since my childhood and it is a long term policy, the tenure for this life insurance policy is 15 years. I pay my premium once in a year by cheque and i am convenient with the payment options. I am happy with the coverage and returns of this policy.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 13, 2018
    • Aviva Life Insurance
      "Good policy to use"
      0.5 4.0/5 "Great!"
      The AVIVA life insurance policy has been used by me for more than 3 years. This policy has the tenure of 20years. The customer support service and the response is good with the Aviva insurance. I pay the premium amount around Rs,10,000 in an year.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 13, 2018
    • LIC Life Insurance
      "BEST"
      0.5 5.0/5 "Blown Away!"
      MONEY BACK i have been using from the LIC. I have been using since 2009. It is a long term policy of 27 years. I pay for 6 months once for my insurance and through the cash and sometimes through the net banking. I have not taken any of the loans in my insurance.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 13, 2018
    • LIC Life Insurance
      "Good"
      0.5 4.0/5 "Great!"
      I am having the life insurance policy with the Life Insurance Corporation of India and I have not interacted with them as much. Coverage value is fine one with the Life Insurance Corporation of India and I have not claimed as such.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 13, 2018
    • Kotak Life Life Insurance
      "Good policy to use"
      0.5 5.0/5 "Blown Away!"
      I am having the Life insurance policy with the KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE company. I got this policy around 14years ago. This policy has the tenure of 20years. I pay the premium amount of Rs,2500 every year once. The plan benefits and the coverage is good with this policy and i am satisfied using it .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 13, 2018
    • LIC Life Insurance
      "Better Jeevan saaral policy"
      0.5 5.0/5 "Blown Away!"
      I pay the premium amount of Rs,12000 every year once to the Jeevan saaral policy . I hold this policy for the past 18years. The customer support service and the response is good with the LIC and this policy ha the tenure of 20 years. The plan benefits and the policy coverage is very good with this policy.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 13, 2018
    • LIC Life Insurance
      "Good Jeevan anand policy"
      0.5 5.0/5 "Blown Away!"
      I got the LIC life insurance policy around 6years ago. The customer support service and the response is good with the LIC and this policy has good plan benefits and better policy coverage with this policy. I pay Rs,762 every 3 months once as premium amount. This policy has the tenure of 20years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 13, 2018
    • SBI Life Life Insurance
      "Better Policy"
      0.5 5.0/5 "Blown Away!"
      Total tenure of the policy is 20 years. It is a cashback policy. Every 5 years i will get 10%. Every 5 years they will give the cashback policy. Once in 5 years, my number will update in their system, i have to give a blank cheque. At the end of th term , I would get bonus points I guess.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 13, 2018
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