Life Insurance

Group Term

Overview

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.

Highlights

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.

Salient Features

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

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.

Note : Policy details offered are indicative, not exhaustive. Please contact your nearest Arunaya office for further details.