Group Term Life Insurance
What is Group Term Life Insurance?
Group term life insurance is a type of insurance coverage offered to a group offering them life insurance under a single policy. It provides financial security to the beneficiaries in the event something untoward were to happen to the covered individual during the coverage period.
What are the features of group life insurance?
Following are Key Features
The group insurance policy protects against the risk of credit as well as life. The coverage of the insurance is directly proportional to the loan amount and the rate of interest. In case of the unfortunate death of a member, the death benefit will be paid to the nominee.
How Does Group Life Insurance Work?
A group insurance is essentially a single master contract which means that it doesn’t really matter how many people are covered, as a single group administrator (master), upholds the contractual relationship between the policyholder (the employer) and the insurance company. He is the one who is responsible for choosing the amount of sum assured and the premium is paid accordingly. This also means that no individual underwriting is required while new members can be added at any point during the course of the year. Most big-sized organizations usually take these policies for their staff.
What is group term life insurance cover?
Covers available
What Is Group Term Life Insurance? Group term life insurance is a type of temporary life insurance in which one contract is issued to cover multiple people. The most common group is a company where the contract is issued to the employer who then offers coverage to employees as a benefit.
Benefits of Group Term Life Insurance
1. Group term life insurance premiums are generally cheaper as compared to individual policies. Owing to the group nature of its coverage, these plans are inexpensive.
2. A group insurance cover, there is no need for undergoing a medical check-up. Everyone opting for such a policy is automatically covered right from the moment they opt-in.
3. One need not worry about premium payments as the premiums are directly deducted from the employee’s salary thereby negating the chances of missing a premium payment. Further, this also helps minimize any chance of the policy lapsing owing to non-payment of premium.
Inclusion
Inclusion refers to the factors considered for coverage,
Exclusion
Exclusion refers to those not covered.
