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How Important It Is to Have A Group Insurance Policy, In the World of Uncertainty?
The backbone of any high performing business is its employees and their happiness. As long as employees are pleased and satisfied with their work and employer, workplaces will always have a productive environment.
The satisfaction of an employee depends on a lot many factors including financial security, varying tasks, career growth, and recognition. A Group Insurance policy helps take care of the financial security part of the employees. As an employer, thus, you can choose from different group term life insurance options to protect your employees and their loved ones from the uncertainties of life.
Group insurance policy offers several benefits including life coverage to all employees included under the group insurance policy undertaking, irrespective of their age, gender, socio-economic background or profession. Here is a brief description of a group insurance policy and its importance for organisations and businesses today.
What Is A Group Insurance Policy?
Mainly, there are two types of insurance groups under a group insurance policy. Take a look below:
1. Formal Insurance Groups (Employers-Employees)
Under a group insurance policy, formal insurance groups consist of the members of an organization, corporation or company. The employer (organization) purchases the group insurance policy that covers the organization’s members (employee).
If you are an employer, then you know that your employees are valuable assets to your organization. For the same, you need to make sure that your organization attracts and retains the top talent available—an easy way to do this is to purchase a group insurance policy.
In today’s uncertain world, when you offer your employees the benefits of a group insurance policy, it shows that you appreciate them for their loyalty and commitment towards the organizations’ goals.
2. Informal Insurance Groups (Non-employer - Employee)
In a group insurance policy, informal insurance groups consist of the same credit card holder and the same cultural or social organization’s members. Here, the administrator of the insurance groups purchases the group insurance policy to cover the various members of the organization.
Overall, a group insurance policy acts as a group term life insurance to fulfil your requirements by offering the safety of Life cover to safeguard your organization’s members and their dependents.
2. Informal Insurance Groups (Non-employer - Employee)
In a group insurance policy, informal insurance groups consist of the same credit card holder and the same cultural or social organization’s members. Here, the administrator of the insurance groups purchases the group insurance policy to cover the various members of the organization .
Overall, a group insurance policy acts as a group term life insurance to fulfil your requirements by offering the safety of Life cover to safeguard your organization’s members and their dependents.
What Are the Various Functions of a Group Insurance Policy?
Although the group insurance policy has various objectives, they include the following core functions:
1. Term Life Insurance
Under group insurance policy, the sum assured or coverage is provided as a pay-out to the family of the deceased employee, due to untimely death during the employment tenure with the organization.
2. Gratuity
Once an employee completes five years of service, they become eligible for gratuity (subjected to applicable laws.) The group insurance policy offers investment options to the organization to help create a gratuity corpus.
3. Covering liabilities
A group insurance policy can cover the outstanding dues or loans (such as home loans or personal loans) of the participating members, in case of unfortunate demise or disability.
Why Choose A Group Insurance Policy?
One of the most important reasons to select a group insurance policy is its hassle-free mechanism to provide a group term life insurance cover at scale. The group insurance policy is ideal for employers, associations, organizations, banks or financial institutions to cover a set of people falling under a standard category or insurance groups. The significant advantages of a group insurance policy include:
- Customized plans with lower premiums
- Better employee retention and talent acquisition
Before you purchase a group insurance policy, make sure that you compare different insurance plans carefully.
Why Choose A Group Insurance Policy?
One of the most important reasons to select a group insurance policy is its hassle-free mechanism to provide a group term life insurance cover at scale. The group insurance policy is ideal for employers, associations, organizations, banks or financial institutions to cover a set of people falling under a standard category or insurance groups. The significant advantages of a group insurance policy include:
- Customized plans with lower premiums
- Better employee retention and talent acquisition
Before you purchase a group insurance policy, make sure that you compare different insurance plans carefully.
Why Organizations Choose A Group Insurance Policy?
Organizations that understand the risks their employees might face, opt for a group insurance policy to safeguard its employees from troubled times. When organizations purchase a group insurance policy, they receive a comprehensive group term life insurance coverage for their personnel, covering health, personal accident and business travel.
investing in a group insurance policy helps employers make sure that their employees can work on expanding and improving the business rather than worrying about safety and financial security. The benefits of group insurance policy include:
1. Improve Employee Retention
With a group insurance policy offers, companies can attract and retain their employees. This also improves the business’ brand image.
2. Enable Ease of Operation
A group insurance policy has a straightforward and simple insurance renewal process. It is mainly because all the different policies under a group insurance policy get processed as a single policy, making the whole renewal process seamless.
You, as an employer, can get all the members of your organization secured under one single group insurance policy. There is no difficulty in maintaining multiple insurance plans for every employee.
3. Better Cost Savings
The group insurance policy covers a large number of people, thereby reducing the risk factor. Hence you can avail of cost effective group policy insurance premium rates.
4. Increase Employee Satisfaction
With a comprehensive group insurance policy and services, organizations ensure that all its employees are safeguarded against unfortunate events. Not only does a group insurance policy protect your employees, but it also shows that you, as an organization, care about their needs. This increases overall employee satisfaction.
5. Serves as An add on benefit
To the individuals associated with the organization, a group insurance policy serves as an add on beenfit. You can have various coverage slabs based on salary or contribution.
6. Meet Statutory Obligations
If you are an employer, a group insurance policy helps you meet your statutory obligations
7. Avail Tax-Saving Advantages
The premium paid for a group insurance policy helps you avail tax benefits in the form of tax exemption under [2] section 37 of the Income Tax Act . So, you can save a substantial amount of money when participating in a group insurance policy.
8. Better Claim Settlement process
Dedicated claim settlement teams handle the group insurance policy. Hence, claim settlements have lesser restrictions and faster request processing.
What Should You Know Before Participating in A Group Insurance Policy?
when you participate in or purchase a group insurance policy [1], be careful about these things:
1. The manager/ administrator of the insurance groups will only be issued one master group insurance policy in the name of the group, for example, the organization or company.
2. If you have participated in a non-employer-employee group insurance policy, then you are entitled to get an insurance certificate for your records. This insurance certificate should include:
- The List of Benefits
- The Charged Premiums
- The Terms and Conditions
3. You could lose your cover as it ceases when you leave the group. In case you, as an employee, have either decided not to opt for a group insurance policy or if you have left the organization.
4. The insurer should offer you continued coverage under an individual policy when you leave the group.
5. The manager/ administrator of the insurance groups must disclose the premium rates and terms and conditions of the group insurance policy that includes the premium discounts offered to the group.
6. The manager/ administrator of the respective insurance groups also has to disclose any administrative or related charges collected from the members that are over and above the premium charged by the group insurance policy provider.
Additionally, you can also check the latest [3] IRDAI guidelines for group insurance policy for better clarification.
Fulfil All Your Group Insurance Policy Needs with Max Life Insurance
Purchasing a group insurance policy is a necessity in our times of globalization. While many invest in group term life insurance, not all know about the many benefits, it offers. In your absence, a group insurance policy supports your family in times of difficulty and provides them with financial assistance. Moreover, a group insurance policy ensures protection from unforeseen circumstances and mitigates the risk for all employees of an organisation..
At Max Life Insurance, with our group insurance policy, we offer Life insurance, voluntary funded plans such as group gratuity, and pure protection plans for your organization’s members to fulfil their security and saving requirements. Our group insurance policy acts as a group term life insurance that provides covers for various financial aspects to provide comprehensive financial security to not only your employees but also their loved ones.
When you buy a group insurance policy from Max Life Insurance, you are offered a wide range of group insurances. Our top options for the group insurance policy under group term life insurance plans include:
- Group Term Life Platinum Assurance Plan (UIN: 104N112V01) *
- Max Life Group Super Life Premier (UIN: 104N088V02) **
- Max Life Group Gratuity Premier Plan (UIN: 104L087V01) **
These flexible group insurance policy helps in the better protection of your employees.
You can compare the insurance plans and select the one that suits your business requirements and help provide financial security to your employees and earn multiple other benefits. So, choose to invest in a group insurance policy now and enable security for all your organization’s members!
**Non Participating Non Linked One Year Group Term Insurance Plan.
*Non Linked Non Participating One Year Renewable Group Term Insurance Plan.
***A Unit Linked Non Participating Group Insurance Plan
ARN - GIP/LI/110920
