In today’s day and age, group life insurance plans have become a central constituent of the benefit packages offered by employers to their employees. Essentially, a group life insurance policy refers to the life insurance coverage provided to a group of people, usually employees working in an organization. The primary purpose of the group life insurance policies is to provide financial independence and support to the concerned employee’s family in case of any emergencies. In case of the concerned employee’s demise while employed with the organization, the respective group insurance policy would provide the much-needed monetary guarantee to the grieving family.
Eligibility Criteria for Group Life Insurance Policies
Group life insurance policies can be purchased by –
Also Read - Group Term Life Insurance
Features of the Group Life Insurance Policies
A group life insurance policy essentially provides affordable and efficient life insurance protection to the employees working within an organization. Some of the impotant features of these group life insurance policies include –
1. Insurance Coverage for Large Group of People
a group life insurance policy provides life cover protection to multiple individuals under single or master contract policy. The insurance company does not have to go through the tedious process of filling out applications or conduct medical tests for each applicant. Instead, the employer becomes the applicant and also the master policyholder, thus choosing the policy benefits and completing the formalities of buying the group life insurance policy
2. Affordable Life Cover
Affordability is one of the significant features of group life insurance policies. Both the employers and the employees usually share the cost of availing of the life insurance benefit, making them highly affordable for all concerned individuals. As part of the premium contribution, the employer may decide to deduct a small part of its salary.
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Working of a Group Life Insurance Policy
The working of group life insurance policy is described in the following flowchart –
Canara HSBC Life Insurance offers a variety of group life insurance plans that can help employers and affinity groups to maximize their employee benefit payouts effectively. At the same time, these plans help secure the life insurance and financial needs of their members.