Group life insurance is the best way to cover all your staff under one master policy. To own a group life insurance, you need to be a part of the group. This plan can be differentiated as:
• No-Contributory Scheme
According to this group insurance type, the premium amount is funded by the employer wholly or by the nodal agency.
• Contributory Scheme
Under this scheme, the company and employees both pay premium towards a group life insurance.
Advantages of Group Life Insurance
- This type of insurance covers large group of people at subsidized costs.
- Eligible group of members who are otherwise uninsurable under individual over can be insured under this policy.
- As compared to individual insurance policies, group insurance is considered as more reasonable.
Group insurance offers a lump sum amount to a nominee in case of a policyholder’s death during the policy period. Group insurance premium is experienced rated and depends on the employee’s age.
Term insurance related products include Group term insurance and Credit Life insurance. On the other hand, Fund Management based products include Group Superannuation, Group annuities, group gratuity scheme and Group leave encashment.
Group Investment Linked Insurance Plan
It gives the dual benefit of protection and investment. This group insurance policy also known as group ULIP plans as it offer the benefit of market linked investments.
Group Gratuity Plan
This is a fund management based group insurance plan which pays a gratuity as benefit to employees when they stop working but only after completion of five years of employment.
Group Leave Encashment Plan
It helps the company to fund their leave encashment liability payable to your group insurance holders.
Group Critical Illness Rider
This add-on rider gives extra financial security in case of a critical illness.
Group Mortgage Redemption Assurance Plan
This policy insures the life of a member who has taken a loan.