Group Term Life Insurance
GTLI Policy is a fundamental constituent in benefit packages presented to employees by employers and its integral part of Employer Benefit schemes.
Group Term Life Insurance Plans, (GTLI) as the name suggests, are designed to offer life insurance to a group of people under a single policy. GTLI policy is not restricted to merely employer-employee groups but is also extended to other groups such as customers of banks, NGOs, professional groups, non-banking financial institutions, and microfinance institutions. A GTLI policy for employees assures financial assistance and independence to the beneficiaries of the concerned employee, in the event of his or her death. It offers multifarious benefits, from uniform cover to all, to ranked covers to various grades of members. Some group insurance schemes also provide covers for outstanding loans to a group of borrowers, while some come with critical illness and disability benefits.
Features of Group Term Life Insurance Plans
Group term life insurance schemes have a lot of attractive features that make them ideal for employee benefit packages. Following are few of the many features of group life insurance schemes :
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Members can be added at any point of the year
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A pre-decided sum assured is paid to the beneficiary of the insured in the event of death
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Add on covers are provided as riders that insure for critical illnesses, accidental deaths, disabilities, etc.
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The application process is quick and easy
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The minimum size of the group is 50 members
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Terminal illness is provided as a built-in benefit
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Cheaper than individual policy cover
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Employees can enjoy the benefits they are entitled to while maintaining a healthy and strong connect with the employers
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Add on covers are provided as riders that insure for critical illnesses, accidental deaths, disabilities, etc.
Benefits of a Group Term Insurance Plan to employees :
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Employees are assured of financial assistance being extended to their families in the unfortunate event of their demise, critical illness, etc.
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Employees can benefit from the inconvenience of medical tests be done away with until their free cover limits.
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The premiums paid by their employers are not treated as perquisites.
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Employees can enjoy death benefits that are exempt from tax under Section 10(10D)
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Easy administration by way of simple documentation
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Can be customised to meet niche needs of the employees enrolled
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Offers security to the family of the insured • Safeguards the insured’s financial interest
Group term life insurance policies are offered to the following sections of people :
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Employer-employee groups
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Non employer- employee groups
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Banks
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Professional groups
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Non-banking financial institutions
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Microfinance institutions
The maximum age to enrol in a group life insurance plan is 69 years.
The maximum age at the time of expiry of the policy is 70 years.
The minimum age for enrolling into a group term life insurance plan is 18 years of age.
The tenure of a group term life insurance the policy is 1 year.
Following are the benefits of a group term insurance plan to employees-
Employees are assured of financial assistance being extended to their families in the unfortunate event of their demise, critical illness, etc.
Employees can benefit from the inconvenience of medical tests are done away with until their free cover limits.
The premiums paid by their employers are not treated as perquisites.
Employees can enjoy death benefits that are exempt from tax under Section 10(10D)
Easy administration by way of simple documentation can be customized to meet the niche needs of the employees enrolled
Offers security to the family of the insured Safeguards the insured’s financial interest
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Features of Group Term Life Insurance Plans:
Group term life insurance schemes have a lot of attractive features which make them ideal for employee benefit packages. Following are few of the many features of group life insurance schemes-
· Members can be added at any point of the year
· A pre-decided sum assured is paid to the beneficiary of the insured in the event of death
· Add on covers are provided as riders that insure for critical illnesses, accidental deaths, disabilities, etc.
· The application process is quick and easy
· The minimum size of the group is 50 members
· Terminal illness is provided as a built-in benefit
· Cheaper than individual policy cover
· Employees can enjoy the benefits they are entitled to while maintaining a healthy and strong connection with the employers.
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Group Life Claim Process:
In case of the untimely demise of the employee, the nominee or beneficiary can file a claim to get the sum assured through the following steps: Inform the insurance company within 24 hours or as early as possible Submit the necessary documents like original death certificate, insurance copy, etc. to the insurance company Once these documents are submitted, the insurance company would assess the details and accordingly settle the claim, if approved
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Time Taken to Settle Claims:
On receiving the required documents for making claims, the company will connect TPA/insurance Company that will appoint a surveyor to evaluate the case. Once they are satisfied with the claim, they will transfer the amount to the beneficiary through the organisation within 7-10 days from the date of receipt of the documents.
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Renewal Process:
Group life insurance plans can be renewed after a year of the commencement of the policy. The corporation gets 3 months to revive the policy from the date of first unpaid premium. If the policyholder wants to add or remove any member from the policy, he/she can do it at the time of renewal.
Group Life Insurance
