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Is Your Group Life Insurance Enough? Life Insurance

Is Your Group Life Insurance Enough?

Sponsored post | @indiablooms | 13 Jan 2022, 02:20 pm

Introduction

Shiva, a 30-year-old happily working in a renowned multinational company. While working in the office, one morning, he gets a stroke and meets with an untimely death. As Shiva was the family's sole bread-earner, they entered a dark phase of their life post his death. But, fortunately he had a group life insurance that helped his family sail through the dire times. 

Life is like a pandora box; you never know what will be next to pop out. Actual survival is being prepared for every worst possible condition. And, one of the best ways to do that is by purchasing life insurance to secure and guarantee your loved ones a life where they don't have to compromise and settle for less.

Life insurance is one of the mandates that one must include in their kitty. There are different types of insurances available in the market that cater to people from different walks of life with their concerned set of needs and requirements. 

This blog will help you to understand, 

  • What is a group life insurance scheme?

  • How does group life insurance work?

  • What are group life insurance benefits?

  • How much insurance should one carry?

  • What are the best group insurance schemes to own in India in 2022?

Don't feel burdened with the questions because we will be providing straightforward solutions to the queries mentioned above. 

What is Group Life Insurance?

A group life insurance is valuable insurance that the organization's employer provides to their employee. It is said to be a group life insurance scheme because it is helpful to a group of people.

Group insurance policies are comparatively less expensive than individual insurance schemes, and insurance costs are substantially lower.

Under this insurance umbrella, the employers are required to provide insurance to their employees and, as a result, frequently opt for group insurance coverage. 

The primary purpose of owning an insurance plan is to have a financial backup for the family even after your unfortunate death. Similarly, the central goal of group life insurance is to give financial security to the employee's family if they face any emergency, such as unexpected death, accident, and many more unfortunate events while working for the company.

Providing group life insurance to the employees also helps raise a bar of credibility and concern factor from the organization's end, which would positively impact the production front. 

Now, we will discuss the eligibility criteria to qualify for group life insurance, and they are as follows:

  • To begin with, the age of the policyholder should be at least 18 to be part of the group insurance plan. However, the age eligibility can fluctuate from insurer to insurer.

  • The minimum requirement of group members varies depending on the group insurance plan offered by the insurance company. Therefore, read the scheme before purchasing.

Types of Group Life Insurance

As life insurance is a cluster that entails many insurance types, so does every branch of it hold home for various options for people with their tailored needs. 

There are different types of group insurance available, and they are as follows:

Group Life Insurance: This type of group insurance provides the group members with term life insurance or a death benefit for a certain period. Here, if one group member meets with an accident or has a natural death, their respective nominee shall receive compensation equal to the sum assured in the policy.

And, if the policyholder survives through the maturity period, there will be nil return benefit or savings. 

Group Personal Accident Insurance: Under this roof of group insurance, it guarantees protection for the group members if they meet with a fatal accident or disability caused due to an accident. The insurance company pays out benefits if the designated member suffers from a permanent - whole, partial disability, and temporary total disability.

Group Health Insurance: In this type of group insurance, the insurer provides health coverage to all members. This plan covers medical expenses such as - sickness, accidental hospitalization, ambulance fees, and many more medical-related elements.

Group Travel Insurance: Here, the insurer protects a group traveling together against unforeseen medical or non-medical catastrophes. For instance, your group decides to go on a hill station and meets with a landslide; this particular group insurance will cover your medical expenditures, personal accident, passport loss, personal responsibility, aircraft delays, trip postponements, baggage loss, and cancellations. 

How Does Group Life Insurance Work?

After understanding the basic definition and the types of group life insurance, let us know how it works. So, the insurance company considers a group is less likely to be risky than an individual. 

Group insurance is relatively more affordable and cheap than investing in life insurance for an individual entity. 

The majority of people obtain group insurance from their organization. 

  • At first, you meet the eligibility criteria and make the first deposit to the insurance company. After the first deposit, a master group life insurance is issued to a group administrator.

  • Here, the first installment for the policy covers all members for a year.

  • In this group insurance plan, the group members can choose whether the sum assured should be paid out in a lump sum or linked to the loan account.

  • The group life insurance plans are renewable on an annual basis.

  • Under this insurance plan, the premiums are calculated based on age and group size-related differences.

What is the Benefit of Group Life Insurance?

Gratuity: This benefit payment is paid to the policyholder when they have completed specific years in the organization.  Also, the organization will be able to build assets by purchasing a Group Life Insurance Policy, allowing a gratuity benefit to be offered to employees.

Superannuation: This particular benefit will soothe your financial sail in the retirement phase because the amount accrued under this mechanism will be paid back to the employee during their period of retirement

Death benefit: In this benefit, if the insured member dies, the sum assured shall be paid to the policyholder's chosen nominee.

Family Cover: Certain insurance companies give you the leverage to cover your family. Isn't this a selfless deal for you?

Zero Biasness - Same Coverage: A group insurance plan provides the same coverage to all group members, regardless of their position, age, income, etc. As a result, a group insurance system enables persons from lower socioeconomic backgrounds to acquire coverage online with those from higher socioeconomic classes.

Best Group Life Insurance Scheme

After understanding the nitty-gritty of group life insurance, let us filter the best group life insurance for you, and that is: 

Aditya Birla Sun Life Insurance Group Protection Solutions

This group insurance plan by the ABSLI serves as an excellent tool for businesses to strengthen their ties with their personnel. It acts as a mutual beneficiary point for the employee and employer. Apart from offering the death benefit, it also covers aspects such as accidental death, disability, critical and terminal disease covered by various optional benefits.

Some of the features and benefits of this plan are as follows:

  • You can leverage a high possibility of customization, adaptability, and standardization.

  • Avail death benefit

  • With the individual conversion option, the policyholder surrenders the policy, and the insured soul has the opportunity to continue their coverage as individual insurance. It endorses customization.

  • The policyholder can handle it with complete flexibility, with the sum assured being the same for all employees or varying depending on their designation or pay scale.

Conclusion

Owning a group life insurance can have multiple benefits for employees, employers, and families because it covers all in some or other ways. In short, owning a group life insurance is a win-win deal for various tangents, but choosing the right one is the deal-breaker. 

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