Want to present your employees with complete peace of mind? If so, then the group life insurance is the one to consider. With group life insurance plans, you will enjoy death benefits. So, protect your beloved now with 100% of the sum, assured even when you are absent.
It will cover accident and disability plans as well. You can procure a guaranteed sum designed for your group members on your demise because of an accident or partial or total disability as a result of the accident.
There are certain tax benefits for you to enjoy with the group life insurance policy. The policy will procure the tax benefits right from the time you start to pay premiums. So, you can end up saving around Rs.1, 50, 000 from the current tax.
How does the group term life work?
As it can be understood from the name itself, the group life insurance policy refers to life coverage provided to a group of people. These policies will act as a monetary cushion for employee benefits covered under the group life insurance plan during the death of the insured individual. So, being an employee, you get to secure your family’s financial independence through this plan.
- The premium for this policy can be paid totally by the employer, and sometimes, the employees can contribute.
2. The premium payment during the starting of the year ensures that the employees are covered for a period of 1 year from the commencement date of the policy.
3. These policies are renewable annually by the employers or the employees, whoever is addressing the premiums.
Get on with the benefits:
While looking for term insurance, you might have thought of giving group life insurance a try. As this is a policy group, the employees won’t need to go for medical tests to administer under any other life insurance based plan. Furthermore, you get to customise the plan to match the needs of your employees, who will get covered.
- There are some add-on covers provided as the riders will insure for accidental deaths, critical illnesses, disabilities, and so much more.
2. Most of the time, the scheme’s administrator, the employer, will be the one to match decisions regarding the extended coverage.
3. Even the employer might keep a master insurance contract while the employees covered under this plan will be given an insurance certificate as proof.
4. For rounding up the benefits, you can extend protection for the family, beneficiary or dependent of the covered employee.
5. Moreover, this policy will act out as a motivation tool and employee retention tool. Most of the time, it will be cheaper than any of the individual life cover.
6. Even though the employer might get tax benefits, which are subject to prevailing tax laws, it is not quite treated as a prerequisite in the employee’s hands.
It will offer the option for converting to individual coveragewhenever the employee plans to leave the firm.
But, these group life insurance policies will come with death benefits. So, they are considered to be a pure version of insurance products.