Employees are one of the most crucial assets of an organisation. Therefore, organisations should strive to protect them at all costs. Further, employees are often the sole earning members of their families. Therefore, any unfortunate event can be damaging not only to the organisation but also to their family members.
Therefore, most organisations endeavour to provide insurance cover to their employees to protect their families in their absence financially. This is done through a group term life insurance plan. What is it,what are the benefits of group life insurance? Let’s find out!
What is Group Term life Insurance?
A group life insurance is the life insurance provided to a group of people by an organisation or an association. In case of any unfortunate event, a predetermined sum, per the terms of the insurance plan, is released to the family members of the employee or member. The employer usually provides group life insurance to their workforcespecific associations to their members.
Benefits of Group Term Life Insurance
Following are the benefits of group life insurance:
- Automatic Cover: A group life insurance provides the life insurance cover on simply becoming a part of the group. This is especially beneficial for those members who do not have their life insurance policy. Thus, they are assured of the financial benefit being extended to their families in case any unfortunate event happens.
- Tax Benefits: A group life insurance cover provides tax benefits to both the employers as well as the employees. The employers can claim a deduction of the premium paid on group life insurance. In contrast, the proceeds received by the employees from the insurance cover are exempt from tax under Section 10(10D).
- No Pre-Medical Checkups: A group life insurance policies do not mandate a pre-medical checkup before reaping the policy’s benefits. Thus, employees can join the groupget insured without any hassle.
- Customisable: Each employee or member of the group can have their health issues requiring specific coverages that may not be a part of the group insurance coverage. A group term life insurance provides the base coveragean option to customise the plan per each individual’s needspreferences. Thus, employeesmembers can customise the plan by including add-ons to ensure comprehensive life coverage.
- Cost-Effective: Group insurance provides coverage to many people at a time; therefore, it is far more cost-effective than each member’s individual life insurance coverages.
- No Chance of Missing on Premium Payments: Skipping on insurance premium due dates can lead to lapsation of insurance policies. However, with the group insurance coverage, as the premiums are borne by the organisationeven if in case borne by the employees, they are automatically deducted from the salary of such employees. Therefore, there is no requirement to keep track of the due date for paying life insurance premiums.
- Gratuity Funding: Employers get support in accumulating funds for the gratuity liability towards their employees. By investing in group life insurance, employers benefit from gratuity fundingthe life insurance benefit for their employees.
- Simple Documentation: Getting admitted to the group life insurance plans involves minimal documentation compared to the individual life insurance plans. This makes the process more convenienthassle-free.
- Lucrative Returns: The returns earned depend upon the performance of the funds selected by the clients. Therefore, it opens the doors for lucrative earnings.
- Option to Choose Sum Assured: While the base cover is the same for all the employees, the sum assured can be enhanced at the employees’ discretion. Thus, employees can select the sum assured that they feel is sufficient to secure them financially.
- Family Coverage for Health Insurance: In case group health insurance is also included, the health insurance cover is not limited to the employees or members of an organisation or institution. Even the family members of the employeesmembers can be covered under the group health insurance.
Which is the Ideal Group Term Life Insurance?
An ideal group life insurance adequately securesmeets employees’ financial security needs. Plum Insurance provides a perfect group life-term insurance plan that suits the needs of each memberemployee of an organisation. Following are the features of Plum Insurance group life insurance:
- Digital Claims: Get rid of tedious paperworkallow your employeesmembers to filereceive claims digitally.
- Chatbot Assistance: Now, assistance is not limited to just working hours. Experience the power of AI with Kumar, our 24*7 chatbot assistance always ready to guide you with your needs.
- Group Health Insurance: As the saying goes, ‘Health is Wealth’. Extend your insurance coverage to health insurance as well.
- Unlimited Doctors on Call: You can get doctors on call whenever an emergency arises. Further, it allows you to avail of unlimited doctor-on-call consultations.
- Wellness Sessions: It’s time to take care of your wellness. Get expert advice on your well-being with proper guidance from industry experts.
- Discounts on Medicines: Another peculiar benefit of this group life insurance is that employeesmembers can receive good deals on medicines.
- WhatsApp Support: WhatsApp has become one of the primary modes of communication. With Plum, you can also avail of WhatsApp support, making it more convenient than ever to receive support services.
- Annual Health Checkups: Prevention is always better than cure. If an employee falls sick, it causes loss to the employeesthe organisation. Therefore, comprehensive health checkups that allow employees to keep track of their healthwell-being are included with the package.
- Group Personal Accident Cover: It allows you to include an optional group personal accidental cover alongside the term life insurance cover. Added covers provide added security!
In the current uncertain situations, it is always wiser for organisations to adequately provide insurance cover to their employeesworkforce. Are your membersworkforce adequately covered? If not, it’s time to show that you care for your employeesmembers with Plum Insurance.
