Group Life Insurance
" Group life insurance is offered by an employer or other large-scale entity such an association or labor organization to its workers or members. "
Group Life Insurance
Group insurance is an insurance that covers a group of people, for example the members of a society or professional association, or the employees of a particular employer for the purpose of taking insurance. ...Group insurance may offer life insurance, health insurance, and/or some other types of personal insurance.The Characteristics of Group Insurance differs from individual insurance in several respects. A distinctive characteristic is the coverage of many persons under one contract. A master contract is formed between the insurer and the group policy owner for the benefit of the individual members. Coverage is normally only valid for as long as a member is part of the group. Once the member leaves, coverage ends. For example, an employee is covered for as long as he remains with his company. But if he resigns or is fired, the employer's insurance contract ends.
KEY TAKEAWAYS
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Group life insurance is offered by an employer or other large-scale entity such as an association or labour organization to its workers or members.
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Group life insurance is fairly inexpensive and may even be free.
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This kind of insurance generally provides basic coverage.
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Some organizations require group members to participate for a minimum amount of time before they are granted coverage.
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Coverage may be terminated or converted to an individual policy once a member leaves the group.
Group Term Life Insurance
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 employer groups like 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.
GTLI Policy is a fundamental constituent in benefit packages presented to employees by employers and its integral part of Employer-Employee Benefit schemes.
Group Gratuity Scheme
It is a known fact that the Gratuity Liability tends to increase with time as the salary and the tenure of the employees' increases. An employer can pay out the gratuity proceeds from his current revenue (on a PAYGO basis) but this can cause financial strain at times. Thus, a prudent and tax-efficient way of meeting Gratuity Liability is to ascertain the Liability, set up a Gratuity Fund, and pay contributions as and when required.
The Insurance Companies offer two kinds of plans- Guaranteed return Plans and Market Linked plans. A company contributes towards its liability which is invested by the Insurance Company to generate returns on the corpus. This plan offers interest income or market-linked returns which gets credited to the policy at the end of the financial year.
Group Superannuation Scheme
As an employer, your employees are your most important asset. It is important for you to show your appreciation and gain their loyalty by offering them special benefits. These benefits can improve their lives and help them save for their retirement.
With the Group Superannuation plan, you can help your employees meet their saving requirements. It offers them an opportunity to grow their money as per their risk appetite and provides them with a corpus at the time of their retirement Superannuation is one of the most important retirement benefits for your employees. It allows them to save a portion of their income during their employment at your organization. These savings help them take care of their financial requirements post-retirement, be it their medical needs or other expenses.
Leave Encashment Scheme
Group Leave Encashment Plan is a non-linked non-participating group leave encashment product offering fund management. This plan offers interest income which gets credited to the policy at the end of the financial year. The interest amount once credited to the policy account will become guaranteed. This Product offers Fund Management of employers’ liability and life cover to the employees.
The Group Leave Encashment Scheme is a non-participating plan that helps employers encash leaves for the employees. This fund-based variable plan also offers a life cover for members of the scheme. The plan meets the liability for providing leave encashment to employees and also offers life cover to recompense the employer for the death of an employee.
Employee Deposit Link Insurance (EDLI)
Employees’ Deposit Linked Insurance scheme provides for a lump sum payment to the insured’s nominated beneficiary in the event of death due to natural causes, illness, or accident.
Nowadays, most organisations offer the facility of provident fund (PF). EPF (Employees’ Provident Fund Scheme 1952) and EPS (Employees’ Pension Scheme 1995) are the two different retirement saving schemes under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, meant for salaried employees. EDLI scheme is applicable to all the factories and establishments to which the EPF & MP Act, 1952 applies. It is mandatory for every employee drawing a basic pay beyond the threshold limit per month to make a contribution towards EPF & EPS.
