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FAQs

All that you need to know...

FAQs

faqs

Frequently Asked Questions

What is a group life insurance policy?

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 –

  • Banks
  • Non-banking financial institutions
  • Employer-employee groups
  • Non-employer-employee groups
  • Microfinance institutions
  • Professional groups

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.

Working of a Group Life Insurance Policy

The working of group life insurance policy is described in the following flowchart –

  • A master group insurance policy is issued to a group administrator, after an initial payment of payment
  • The premium payment made initially covers all life insured members under the group life insurance policy for one year fro the date of the commencement of the group policy
  • The premium payment made initially covers all life insured members under the group life insurance policy for one year fro the date of the commencement of the group policy
  • The members of the group get an option to select the sum assured – either as a lump sum amount payout or be linked to a salary or loan account
  • The group life insurance policies are annually renewable
  • The premium payable under group life insurance policies is based on the differences in the age allocation and size of the concerned age group

Canara HSBC Oriental Bank Of Commerce 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.