GIPSA, PPN and Empanelment in Health Insurance - Explained
GIPSA, PPN in GIPSA, Points to remember before opting GIPSA services, hospitals, empanelment
February 20, 2023
Table of contents
Term insurance is a pure insurance product and life insurance has multiple non-insurance features as well.
Term insurance is very simple. When the policyholder loses their life, the insurance company gives a sum assured to the nominee. This will happen when the policyholder has paid the premiums regularly ever since the policy was bought and dies within the policy tenure.
Life insurance is a bit similar. If the policyholder dies within the policy tenure and has been paying the premiums regularly, then the nominee gives the sum assured. Life insurance generally lasts from the year you buy to the year you will be 100 years old. Now if you don’t die till 100, the insurer will give you pay you the benefits. This is not applicable in term insurance. The non-insurance features include being able to borrow money from the insurer against the premium you paid. And the premium you pay can be used in investments and funds by the insurer. When the insurer makes a profit, a certain percentage is given to the policyholder.
Employers always go for group term life insurance when they want to cover their employees.
Also Read: Difference between health insurance and term insurance
Group term life insurance vs group personal accident insurance
In both of these insurances, when the policyholder dies, the nominee gets the sum assured. The only difference lies in how the policyholder dies. In group term life insurance, any natural death and accidents are covered. In group personal accident insurance only death caused by accidents is covered. In addition, the medical expenses during hospitalization after an accident are also covered.
Group term life insurance vs individual term insurance
The major difference between group term life insurance and individual term life insurance is the policyholder. Group insurance is bought by employers/association heads and the like for their team which is called a group. Individual insurance is bought by an individual for oneself or their family. In both cases, the intent of the policy is to offer the sum assured to the beneficiary if the policyholder expires in during the period of the policy. The other features like coverage and riders are subject to the policy plan and the requirements of policy buyer. However, it is necessary to know that group term life insurance is more customizable than individual term insurance. The reason behind this is that generally, group insurances cover more number of people.
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