Group Term Life Insurance
A term life insurance plan for the members of a recognised group is known as a group term life insurance policy. If any group member who is covered by the policy passes away during the policy’s term, a benefit is paid. The policy protects against the risk of premature death. An organisation might adopt the policy to protect its employees based on the employer-employee relationship. Any group that fits the criteria established by IRDAI may also choose it. The policy has a one-year coverage period after which it must be renewed to maintain coverage. Until a person leaves the group, they are still covered under the group term life insurance policy.
- Coverage for a group of people, such as employees of a company or members of an organization.
- The amount of coverage can be based on a multiple of an individual’s salary or a fixed amount.
- In some cases, coverage can be extended after the initial term without requiring evidence of insurability.
- Group Term Life Insurance can be a valuable benefit to offer employees as part of a benefits package.
- It can help attract and retain employees by providing financial security to their loved ones in the event of their death.
- The premiums for Group Term Life Insurance policies are generally tax-deductible for the employer.
- Group Term Life Insurance can provide financial security for employees’ loved ones in the event of their death.
- The premiums for Group Term Life Insurance policies are often less expensive than individual policies, making it a cost-effective way to obtain coverage.
- Coverage is typically guaranteed issue, which means that employees may be able to obtain coverage without undergoing a medical exam or answering health questions.
FOR ANY QUERY