When you want to cover a large group of people, such as an entire family, with one policy, group term life insurance can be an excellent choice.
But you must first be certain that you are purchasing the correct type of term life insurance. LNG can assist you with both understanding insurances and selecting the appropriate insurance.
A group term life insurance policy can have various benefits for employers as well as employees. While the benefits may differ, most time and employer will buy a group term life insurance for the employees to cut costs and yet provide a substantial coverage for the employees.
We shall now look at the various benefits the policy has for employees and employers
Related Blog: Group Term Life Insurance: Things You Need to Know
Benefits of Group Term Insurance for Employees
Here are the benefits the Group Term Insurance offers for employees
1. Default insurance cover
Members of a group are insured under a group insurance policy merely for being a part of the group. It provides fundamental insurance to protect those without personal life insurance coverage.
2. Funding for Gratuities
Employers are helped by a methodical approach to accumulating funds for their potential future gratuity liability to the employees. A group insurance policy makes it easier for employers to do both of these things and to insure employee lives with life insurance.
3. Tax Advantages
Both companies and employees can gain tax-wise from group term life insurance coverage. According to current tax laws, Section 10(10D) of the Income Tax Act, 1961 exempts death benefits from taxation. Group insurance programmes also significantly improve employee welfare.
4. Adaptable to the needs of the workforce
With add-ons like schooling allowance, repatriation allowance, accidental death, and others, group insurance policy coverage can be increased to cover a wide range of benefits in addition to the standard cover.
5. No medical examinations
Group term insurance plans spare employees the inconvenience of having to undergo medical examinations.
A group plan’s premium is significantly less than that of an individual policy because it provides insurance coverage for a large number of people.
Unquestionably, obtaining insurance protection against a variety of risk variables, let alone life, is smarter done through a group insurance policy. Analyze the best group strategy first.
Benefits of Group Term Insurance for Employers
Advantages of group term insurance for employers
Group term insurance is popular right now since it gives insurers fantastic advantages. The following is a list of the rewards offered:
Insurance Coverage: The majority of group term insurance plans in use in India automatically insure every member of the group or organisation for as long as they continue to be a part of it. For those groups who cannot afford individual life insurance through separate policies, this is ideal. The member must purchase additional insurance after retiring from the group or when the cover provided in such instances is reduced to a minimal amount.
Low Premium Cost: The premium for group term insurance plans is low when compared to any individual plans.
A group term life insurance will ensure that every individual in a group is secured and at the same time will be cost effective. It is effective for both employers as well as employees. Where in employees can appreciate the benefits provided by the company, and the employers does not have to bare a lot of cost.
Buy group term insurance policy now and protect your employees, for more information consult with Life & General Insurance.