GIPSA, PPN and Empanelment in Health Insurance - Explained
GIPSA, PPN in GIPSA, Points to remember before opting GIPSA services, hospitals, empanelment
October 5, 2022
Table of contents
Group term life insurance is generally bought by the association head or employer for the members or employees. Group term life insurance covers the life of a group of people with a sum assured. A lump sum is given to the nominees of the members covered in the policy in case of death.
Group term life is a type of life insurance policy. In this policy, when a policyholder expires, his/her family will receive a death benefit. Death benefit is lump sum money given to the nominee of the deceased. A nominee is eligible to receive the death benefit only when the policyholder dies during the existence of the policy. If the policyholder outlives the policy duration, then he/she doesn’t receive any amount.
Let’s assume google buys group term life insurance for all its employees in India from Aditya Birla Sun Life Insurance. The policy lasts from July 2022 to July 2023. The sum assured is 5 lacs. The premium for the policy is paid by Google.
When the policy is bought, Google and the insurer make all employees declare a nominee who they trust as the nominee receives the money. In an unfortunate event, one of the employees dies in September, 2022. Now the nominee of the deceased employee.
Also read: Group Term Life Nomination Form
When a company offers group term life insurance, it only covers the employees. The dependents of employees are not included in the policy. However, when something fatal happens to the employees, the family of the employees, who are generally the nominees, benefit from a policy like a group term life insurance. The death benefit of group term life insurance for family helps them financially.
Yes, generally death from an illness is covered. However, some insurers may have reservations about critical illnesses like cancer, HIV, etc. In the latter case, you can buy a critical illness rider (add-on) to cover employees from critical illness too. However, checking with different group term life insurance companies before purchasing a policy is a smart way to go about it.
You should also remember that the policyholders, to be eligible for a payout, don’t have to die from a critical illness. If they are diagnosed with a critical illness, they are eligible to get the sum assured that they can use towards the treatment of the disease.
Below is the list of the most common critical illnesses that most insurers maintain. However, it is up to the insurer. They can choose their critical illnesses list. However, this is a transparent affair, and users can see the list on the insurer's website and ask for the list when buying a policy.
Source: SBI life
Before buying the right policy, one must understand and become aware of the various policies available in the market. In this process, it is very important for the policy-holder to understand the various riders, coverage, and prices that are available in the market.
Once you reach out to an insurer to buy a group term life insurance policy, the insurer will assess the nature and the composition of the group(employees). Employer provides the insurer with details of the employees. Insurers look for risks in their job, age, salary, claim dump from previous years, etc. After this, the insurer can employer can decide and negotiate the offerings and premium. Employees will have to provide the details of their nominees. The sum assured, benefits, inclusion and exclusions are discussed and finalized.
After finalizing, the employer can pay the premium to buy the policy. Group term life insurance is yearly and the premium can be yearly at once or monthly or quarterly. Once the premium is received by the insurer, the policy gets activated and employees can get their policy number and other details required to use the policy.
When you buy the policy you give the insurer the list of employees. All of these employees will be covered in the policy. However, there will be new joiners and people who leave the company. You can add and delete employees in the policy easily with the Pazcare admin dashboard.
If any of the employees die during the tenure of the policy, the nominee of the employee who died receives the sum assured by the insurance company. They can either directly settle with the nominee or give the sum assured to the company and the company will give it to the nominee.
After one year of the activation of the policy, it gets expired. The organization should renew its policy to enjoy the continued cover.
In term life insurance, some policies by some insurers require a medical check-up and some don’t. Based on the policy you choose, your insurer may or may not ask you to go through medical tests.
Medical check-ups are done before buying an insurance policy to check for the current diseases of the policy buyer. These are called pre-existing diseases in insurance. With a pre-existing disease, you are more likely to die than someone without. So insurers would want to understand your health status before giving out a policy.
Group term life insurance is for one year. It is renewed by the employer every year.
It helps employers promote employee wellbeing by offering group term life and health insurance to employees. This also helps attract talent to their company.