What is group term life insurance?
A group term life insurance (GTL) provides term life insurance to employees or members of an organization securing employees’ as well as their family members’ future by receiving a death benefit in case of an unfortunate event.
While ensuring financial protection to the family of an employee, group term life insurance policy also acts as an employee retention instrument for many organizations.
Benefits of group term life insurance policy
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Tax benefits
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Group Term Life Insurance plan provide tax benefits to employers. According to Income Tax Act 1961, employers can claim the premium paid for group term insurance under section (37)1 avail tax benefits.
Customizable riders
Group term insurance plan comes with multiple add-ons/riders. You can choose to include the add-ons for an affordable increase in the premium and make your policy as comprehensive as possible for your budget.
No medical check-ups
Employees need not undergo medical check-ups for their group term insurance policy. Depending on the terms and conditions of the group term plan, employers can purchase the policy from Pazcare.
Employee retention
When companies opt for a group term life insurance, it can not only attract top talents but also contribute to their retention.
List of group health insurance companies in India
How does group term life insurance work?
01
Always consider the sum assured amount while purchasing group term life insurance. The sum assured amount is the total amount an employee’s dependent receives if they pass away during the term.
02
Adding riders to your existing group term plan will make your policy more comprehensive. Knowing the right requirement from your employees and opting for add-ons is the right way to go about adding riders to your policy.
03
Make sure you get the right premium estimate for your policy. Your policy for group term life insurance depends on several factors like the number of employees, average age, industry and so on.
04
Once you purchase the policy, let your employees add their beneficiaries. If the employee passes away during the term, the sum assured cover will be paid to the employee’s beneficiaries.
What should your group term insurance for employees cover?
Accidental death benefit rider
An accidental death benefit rider is an add-on feature that can be added to the group term plan. This rider gives the nominee of the employee the sum insured in case of an accident.
Critical illness rider
Critical illness rider is additional coverage. It can be added to the group term life insurance policy in exchange for an additional premium. A lump sum amount is provided to the family of the deceased employee who was demised from a listed critical illness during the policy tenure.
Permanent and partial disability rider
This rider becomes very crucial if your employees go through a partial or permanent disability following an accident that leads them to travel to the office. In cases like this, the insurance company provides them with a certain percentage (eg: 10%) of the sum assured for the next 5-10 years depending on the group term insurance scheme.
Waiver of premium rider
In case of income loss or disability, and the policyholder is unable to pay future premiums this rider assures the waiver of premiums.
Income benefit rider
Along with the sum assured the family can benefit from the additional income for a span of 5 to 10 years through this rider.
Bereavement benefit
In case of death, the nominee gets payment equivalent to the sum insured.
Age or salary based cover
Provide different coverage based on salary/age/ grade/CTC of employees.
Increase cover easily
When there’s a grade/age/salary revision, the cover can be increased.
Minimum employees
Group term insurance plans can be offered to companies with as low as 50-100 employees.
No medical reports
The previous medical reports of employees aren’t required to get insured which makes the process faster and easier.
Why should I buy a group term insurance policy?
One point of contact
No waiting on customer support calls. From the day you purchase the GTL policy, you will have a dedicated SPOC to handle your employees and help you out at all times.
Easy claim process
Even though the claim process differs from case to case. Pazcare ensures to help you out at every level of claim reimbursement journey.
Go beyond insurance!
Now go a level further by adding health and wellness plans like therapy, wellness sessions, unlimited doctor consultations, and many more to your group personal accident policy.
Admin dashboard
Employers can use the Pazcare admin dashboard to make endorsements, manage and track their policy.
Mobile app for employees
Your employees can easily access their life insurance claims through the app or the dashboard.
Hassle-free claim process
Instead of you nudging the insurer and TPA, Pazcare stands in the queue for you so that you can sit back and relax.
HRMS integration
Pazcare dashboard can be easily integrated with your HRMS to automate endorsements.
Competitive costs
Instead of burning your pockets, get the best quotes for group term life insurance from Pazcare.
How to claim your group term life insurance?
Submit claim form
Related medical reports
Sick leave certificate by the employer
Disability certificate by the health practitioner
Police FIR in case of accidents
Submit claim form
Death certificate
Post-mortem report in case of unnatural death
Letter from HR
Salary Slips
Police FIR
Documents required to buy a group term insurance plan
Name of employees
Employee ID
Employees’ CTC
Designation
Date of birth
Covid status
Vaccination details
Gender
Grade
Date of joining the company
Frequently asked questions
What is the age requirement to enter a group term insurance plan?
Although the term insurance for employees can vary when it comes to age, generally it ranges from 18 to 65 years of age.
What is the tenure of a group life insurance plan?
The tenure of a group life insurance plan is 1 year.
What is the maximum age requirement to enrol in a group life insurance plan?
The maximum age to enrol in a group term life insurance plan is 70 years
What is the minimum sum assured under the group term life insurance scheme?
The group life insurance scheme assures a minimum of Rs 1000 - Rs 5000 depending on the plan.
Can I continue with my group term life insurance coverage if I leave my current employer?
No, the policy ends with the termination of your service with your employee. However, the employer can port your policy into individual term insurance in certain cases.
What is a death benefit?
In case of premature death of the insured, the insurance provider pays the assured amount as a death benefit to the designated nominee.
Are riders available with the group term insurance plans?
By paying some extra amount to your group term insurance policy, riders can be added. Some riders include critical illness cover, total permanent disability rider etc.
Do I get a maturity benefit under the group term life insurance plan?
No, there is no maturity benefit included in your group term life insurance cover.
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