There are numerous of Group Life insurance benefits. As there is the option available to the people who desire to obtain a certain financial security for their family, in the event of their demise. With different types of Life insurances that have sprung up in the recent past, there has come one more which stands out from the rest.
- Group Life insurance policy is essentially a life insurance only. With the crucial distinction that it covers a “group” of people against whom such financial protection is provided to their beneficiaries.
- One of the reasons it has not grown very popular is because the people have not really understood the importance of its features and benefits properly.
- Group Life Insurance benefits can be amazing.
- All one need to do is get better guidance and proper information about the relevant aspects of the same.
Group Life insurance benefits
- Group Life insurance benefits are provided to large groups as the coverage extends to a group of people.
- This kind of insurance has been adopted by various employers and organizations to decorate their package offers to the employees.
- In this policy, a single contract is signed between the
- Insurance provider and an employer or an organization for the provision of Life insurance for the members or employees.
- The employer or organization is the Policyholder in this type of insurance.
- Despite being a form of Life Insurance, people are not supposed to count it towards their own financial arrangements, like their own regular policy. However, most people end up making this mistake nonetheless.
- Group Insurance Policies offer only a wider array of facilities than the traditional Life Insurance Policies.
- The following are some advantages or benefits of the Group Life Insurance Policy
No Requirement for Medical Check-ups
- The requirement of Medical check-ups doesn’t exist at all in Group Life Insurance Policies.
- One does not need to appear for a Medical Check-up to be covered under the Group Life insurance policy.
- The Group Life Insurance has taken by the Employer automatically. It covers the employee which joins the organization subsequently.
A good mode of savings to the Employer
- It is provided at a concise rate as compared to the regular Life Insurance Policies.
- This makes it very easy for even those who couldn’t otherwise afford a Life insurance policy, to acquire such a cover.
- It becomes a two in one plan that ensures Employee Welfare, as well as the purpose of Employee Retention.
- Such organizations include these Life insurance covers in the Salary packages for the employees.
- Thereby sometimes also cutting down on the in-hand salary marginally to accommodate this feature.
- High risk-based work leads to a higher premium and vice versa.
Employees and Employers both become entitled to getting tax benefits on account of Group Life Insurance Plans.
Extension to Family of the Members
It is also possible that some plans extend this coverage to the family members.
Affordable and Pocket-friendly
- The Group Insurance Policy may be paid for entirely by the purchasing employer.
- Also, it may split between the employer and employees in a certain ratio.
- Even in the latter case, the policy ends up becoming a whopping 30% to 35% cheaper than the regular Life Insurance Policies.
How to increase the benefits
Despite the numerous Group Life Insurance benefits mentioned, it will be prudent of you to take care of certain shortcomings to take the necessary steps in order to ensure maximum benefits.
Termination of Benefits to ex-employees
The benefits enjoyed under the cover of this policy cease to exist once the employee leaves the organization.
Limited cover granted
- The sums which are assured via the Group Life Insurance benefits are not as high as the regular ones. It is being provided in respect of numerous people.
- Therefore, an employee might need some sort of additional cover, usually via separate life insurance policy, to ensure complete protection to the family.
Weighing the pros and the cons, you can form a well-informed opinion, based on factual knowledge provided above on the issue of Group Life insurance and depending upon your role as the Member of an organization or the Employer, you can proceed ahead. Rest assured, it is a very effective and efficient mode of providing financial security to your members and employees and Finbucket can make it very simple for you.