Benefits of Group Term Life Insurance Plans

Benefits of Group Term Life Insurance Plans

In a country like India, there are many working individuals who are the sole earners for their families. This could be the parents or the partner of that individual. With the concern for one’s well-being, most people tend to invest in insurance that provides their loved ones with financial coverage during emergencies. However, most employers provide something known as group term life insurance to their employees. What exactly is this type of insurance? What are its benefits? Read on to know more.

What is term insurance?

Term insurance is a type of life insurance policy in which the insurer and the policyholder get into an agreement with each other. As per this agreement, the insurer compensates the family of the policyholder with a sum assured in the event that the policyholder passes away during the term of the policy. This amount can be used by them to take care of daily expenses while at the same time having financial backup from life risks.

What is group term life insurancenike air max 270 sale
air max goaterra 2.0
cheap jordan 4
nike air jordan 1 elevate low
boost 350 shoes
lingerie super sexy
air max shoes
nike ispa 270
nike jordan series 06
air jordan 1 low flyease
custom nfl football jerseys
adidas yeezy boost 350 turtle dove
iwona wig
custom jerseys
ja morant jersey original
g>?

A group term life insurance is a type of life insurance policy that is provided by the employer to their employees. As the name suggests, the coverage is provided to a group of employees who are being employed by a company. For example, if there are 50 full-time employees working at an organisation, this insurance policy will cover all of them .

See also  Credit Card Loan Facility – The concept, benefits and beyond

In most cases, the premium for this type of insurance is covered by the employer themselves without the burden of it falling on any employee. However, there are companies wherethe costmay be deducted from their salary. Opting for additional coverage would lead to a higher deduction.

What are the features of this insurance?

The features of this insurance policy are as follows:

  1. The policy covers a minimum of 50 employees at a time
  2. Critical illness cover is included in the policy by default
  3. Compared to the individual policy, this is cheaper
  4. Riders such as critical illness and accidental death benefit are included in the policy

While these are the benefits that employees can enjoy, this policy is not limited to just employer-employees. This policy can be offered to NGOs, bankers, non-employer-employees, etc. However, you should keep in mind that the kind of policy being offered is dependent on the employer.

At times, employers choose to select only a select group of employees under the policy. There are policies where the coverage offered to the employees is uniform in nature, i.e., the amount offered is the same. There are instances where higher-positioned employees could get a higher amount of sum assured than those at entry and mid-level.

What are the benefits?

The main benefit of this policy being the coverage that your loved ones are offered. In the event that you are pass away suddenly due to an illness or accident, your family is compensated. As they are your dependents, the policy will give them a financial compensation known as sum assured or death benefit. This amount will help them face unpredictable life risks in your absence. Many employers have the provision of including your spouse and parents under the coverage of the policy. While this may not be the case with every insurer, it would still benefit you to discuss it with your employer.One other benefit that your family members can enjoy is tax-concession on the death benefit they receive. Under Section 10(10D) of the Income Tax Act, the death benefit or sum assured received from term insurance is eligible for tax-deduction. Certain riders are also included to enhance the coverage of the policy.

See also  Easy Ways to Avoid Making Losses in Hong Kong

These are the features and benefits related to this policy. Make sure that you talk with your employer to understand more about the rules and regulations related to this policy. If you are interested in purchasing a separate policy for yourself, you can use the term insurance premium calculator to see how much the policy would cost you based on your requirements.

Also Read: Everything You Need to Know About Education Loan For Abroad in India

Facebook Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.