As the name implies, group insurance is intended to cover a specified group of individuals. The group is not formed specifically for the purpose of availing insurance but there should be a clear and clear relationship between the team members and the director for services other than insurance. Group Insurance may offer life insurance cover, health cover, or other forms of private insurance.
Most life insurance companies in India have introduced group insurance policies to satisfy with the insurance requirements of particular groups such as professionals, employers-employees, co-operative societies, amongst others. Under such arrangements of companies buying insurance for the workers as a service benefit, the employer becomes the policyholder and the worker the beneficiary.
A group insurance plan offers advantages of standardized policy at very competitive premium rates as risk is distributed over a larger number of individuals. For the supervisor, it offers a hassle-free apparatus to give insurance cover at scale.
It’s a excellent way to effectively extend the choices of gratuity, leave encashment, superannuation and other incentives to the employees or business associates.
Here’s how it works: it secures your resources by providing total financial protection to the beneficiaries by covering contingencies like passing accidental disability, critical illness in addition to terminal illness, like any other life insurance plan, would.
Because it hovers round the loan feature, it enables the policyholder to expand coverage to the members for a broad assortment of loans such as home loan, education loan, automobile loan, personal loan, business loan etc..
Likewise if you provide Superannuation plans to your employees, the Future Generali Group Superannuation Plan is probably the ideal fit. It permits participation from the employer and the worker and a guaranteed return with a minimum floor rate of 1 percent p.a. on the donations made, added return in the form of annual bonuses and residual improvement after 5 decades.
If the group only needs to provide cheap life insurance policy to the members, the preferred strategy is a group term insurance plan, whereby one plan can offer life insurance cover to all members under one plan, and there is flexibility to add or delete members on a monthly basis. In compliance with your purpose and aim, it is possible to get the group insurance coverage most appropriate.
By making the coverage available through a range of employees or group members, group life insurance is the best way of prolonging a life cover to members irrespective of age, sex, socio-economic background or profession, so long as the commonality that binds them together is set up.
The practice is barely distinct from a single life insurance policy: the sum insured is paid out to the dependents of the deceased in the event of passing over the employment tenure with the company, or more correctly, over the tenure of this policy.
Furthermore, these schemes are a terrific mechanism to be utilised as perks and incentives from the employer to provide for retirement plans, pension plans etc.. A corpus for gratuity may also be made through various investment choices under such special schemes designed for the purpose.
The other advantages of a policy such as the life insurance tax benefits are also available to the coverage beneficiaries. Group Insurance is a good method of extending coverage across a broad demographic within a group which has some common ground.