Group Term Life Insurance
Get the perfect term life
insurance plan for your team
*T&Cs apply
Shield your employees from life’s unexpected curveballs
Group Term Life Insurance plan, as implied by the name, is an insurance product crafted to provide life insurance coverage to a group of individuals under one policy.
Group insurance policies for employees provide a safety net for beneficiaries in the unfortunate event of the employee’s demise, offering financial security and independence. These policies offer a range of benefits, including uniform coverage for all members, tiered coverage based on different membership grades, and optional features such as coverage for outstanding loans, critical illness, and disability benefits for the insured group.
By offering this product, your employees can rest assured knowing that their loved ones are financially secure. This type of insurance plan acts as a reliable support system, offering peace of mind for both employees and their families, regardless of the challenges the future may bring.
What is Group Term Life Insurance?
Group term life insurance is a type of life insurance plan that covers multiple individuals or a group under one policy. The main goal is to provide financial protection to the beneficiary if the covered person passes away during the policy term. These plans are usually affordable because the risk is spread across a large group of people.
Term insurance acts as a temporary protection, such as covering financial obligations like mortgages or supporting dependents in the absence of the insured.
Types of Group Term Life Insurance
There are several types of Group Term Life Insurance plans available:
Employer-sponsored Group Term Life Insurance
This coverage is often offered as a standard employment benefit by employers. Typically, the employer covers the premiums, and the amount of coverage is typically based on a multiple of the employee’s salary.
- Basic Group Term Life Insurance: Employers often provide this insurance as a fundamental benefit, offering employees a standard level of protection.
- Supplemental Group Term Life Insurance: This option offers employees the opportunity to increase their coverage beyond the basic plan by buying an additional insurance cover. This supplemental coverage may include benefits like critical illness cover or a group personal accident rider. Typically, the employee bears the cost of this extra coverage.
Non-employer Sponsored Group Term Life Insurance
- Association Group Term Life Insurance: This type of plan is provided through an association or organisation, allowing members to buy coverage at a reduced cost.
- Affinity Group Term Life Insurance: Such a policy is akin to Association Group Term Life Insurance but is typically offered to members of a specific affinity group, like a credit union or alumni association.
- Credit Life Insurance: This type of group term insurance policy is extended by lenders to borrowers, settling the borrower’s debt if they die before it’s fully repaid.
- Wholesale Group Term Life Insurance: Such a policy is sold to a group, like a corporation or labour union, at a discounted cost. The group then allocates coverage to its members.
Features of Group Term Life Insurance
- Such a plan extends life insurance coverage to multiple individuals through a single policy.
- Premium payments are typically covered either entirely by the policyholder or significantly subsidized by the employer.
- In the unfortunate event of the insured individual’s death, the sum assured is disbursed to the nominated beneficiary.
- Group term life insurance plans provide cost-effective coverage due to lower premium rates.
- These plans have a fixed premium and are annually renewable, offering continuous protection.
- While all employees are covered under the same plan, the actual coverage is subject to limitations based on factors such as risk class and group size.
Advantages and Benefits of Group Term Life Insurance
Group Term Life Insurance indeed presents a win-win proposition for both employers and employees. Let’s explore the key advantages and benefits for each of them:
For Employees
For Employers
For Employers
What’s not covered in Group Term Life Insurance?
Insurers may deny group term life coverage or benefits in situations such as:
- Suicide: If a policyholder dies by suicide, their beneficiaries may not receive any benefits from the group term life insurance policy. Suicide is often considered an “intentional self-inflicted injury” by insurers, leading to denial of coverage.
- Injury from dangerous activities: If an individual sustains an injury while participating in activities deemed “dangerous” (such as skydiving), their beneficiary may not receive any benefit from the policy unless such activities are explicitly covered in the policy’s terms and conditions.
Disclaimer: It’s crucial to thoroughly review the specifics of your Group Term Life Insurance plan to grasp the precise coverage details and any supplementary benefits it may encompass. By comprehensively understanding the extent of coverage provided by your Group Term Life Insurance plan, you can make well-informed decisions and guarantee that your employees’ loved ones are safeguarded. Take the time to carefully assess the terms, conditions, and exclusions outlined in your policy to ensure they align with your needs and expectations.
Eligibility for Group Term Life Insurance in India
Group Term Life Insurance offers valuable protection to various segments of the working population in India. Here’s an overview of eligible groups:
Coverage amount may differ: Some plans offer uniform coverage for all members, while others provide graded coverage based on factors like salary or professional experience and grade.
Buying or Enrolling in a Group Term Life Insurance Plan
Here’s a step-by-step guide to enrolling in Group Term Life Insurance:
Step 1: Check with your employer
Begin by contacting your HR department to inquire about the availability of Group Term Life Insurance and the enrollment process. In most cases, your HR manager will convey the details proactively.
Step 2: Understand the coverage
Take the time to understand the coverage offered, including the amount of the sum assured, any additional benefits, and any exclusions that may apply, based on the policy T&Cs.
Step 3: Complete the enrollment process
Follow the instructions provided by your employer or insurance provider to enroll in the Group Term Life Insurance plan. This may involve filling out forms and providing necessary information.
Step 4: Provide required documentation
You may be required to submit some documents, such as proof of employment or personal identification, as per the insurer’s requirements. It’s advisable to have these documents handy.
Step 5: Nominate beneficiaries
Designate the individuals who will receive the benefits of the insurance policy in the event of your death. Ensure you provide accurate and up-to-date beneficiary information.
Step 6: Review and sign the policy
Carefully review the terms and conditions of the insurance policy before signing to ensure you understand your coverage and any associated obligations.
Step 7 : Pay premiums (if applicable)
If there are any premiums associated with the coverage, make sure to pay them on time to keep the policy active and ensure continuous coverage.
Why choose Onsurity as your Group Term Life Insurance Partner?
