Group Insurance Plans for Employee Protection and Benefits

As an organisation, when you buy group term life insurance, you extend security to multiple lives under one agreement while enjoying easy management and cost efficiency. Some key features of group insurance include:

• Tailored Sum Assured: Organisations can select suitable coverage amounts depending on employee roles, salary structures, or group needs. This ensures members receive adequate protection while the master policyholder controls overall plan costs, making benefits fair and sustainable across the entire group.
• Lower Cost Per Person: Since risk is shared across many lives, group insurance premiums are typically lower than those for individual insurance plans. This cost advantage enables employers or associations to provide affordable coverage to members without stretching budgets or reducing other benefits.
• Quick and Easy Onboarding: With straightforward paperwork and minimal health checks, enrolment becomes convenient for both the group and its members. Organisations can bring new employees or members under cover almost instantly, making the plan practical even for growing or changing teams.
• Flexibility to Add or Remove Members: Members can be added when they join or removed when they exit, ensuring the policy stays relevant to the group’s actual size and composition. This dynamic feature ensures fair coverage and premiums that are aligned with current needs.
• Potential Tax Advantages: Premiums paid by employers for employee coverage qualify as a deductible business expense under Section 37 of the Income Tax Act, subject to prevailing tax rules. Similarly, payouts received by nominees are generally tax-free, making group insurance financially beneficial for both organisations and families. For insured members, the death benefit paid to their nominee is normally tax-free under Section 10(10D) of the Income Tax Act.

Group insurance plans bring measurable value to both organisations and their people. They go beyond simple coverage by offering the following benefits:

• Financial Protection for Families: When a covered member passes away, the nominee receives a pre-decided payout. This money can help with household bills, loan instalments, or children’s education, easing pressure during an emotionally and financially difficult time.
• Employee Retention and Motivation: A group insurance life cover benefit shows members that the organisation genuinely values their well-being. Such assurance can enhance job satisfaction, decrease turnover, and foster loyalty, ultimately helping you retain experienced talent for a longer period.
• Hassle-free Management: Handling one group policy for many individuals is easier than managing multiple individual covers. Premium payments, policy renewals, and claim processing become simpler and less time-consuming for the organisation’s HR or administrative teams.
• Flexible Options: You can strengthen the base cover by adding riders such as accidental death or disability benefits. These optional add-ons enable you to tailor protection levels to meet the varied needs of different member groups. However, individuals may have to pay for them separately to the insurance company.

Providing security builds confidence and strengthens relationships. Protect your team today with a reliable group insurance plan.

Different group insurance types offer varied structures, allowing you to select the right level of coverage and benefits for your employees, customers, or members. Some of them available in India are:

1. Group Term Life Insurance: Provides straightforward life protection to all members for a defined term. In the event of a member’s death, their family receives a lump sum, ensuring financial stability and reducing worry about future obligations.
   
   
2. Group Credit Life Insurance: Ideal for lenders and borrowers, this plan clears outstanding loan amounts if the insured borrower passes away during the policy term. Families are not burdened by debt, while lenders maintain healthy repayment records.
   
   
3. Group Savings-linked Insurance: It pairs life cover with a savings element, enabling members to build a financial reserve over time. Families get protection against life’s uncertainties, and members also gain access to accumulated funds at maturity.
   
   
4. Employee Benefit Plans: Allow employers to offer additional perks, such as supplemental life insurance, disability support, or wellness-related benefits. These plans help strengthen workplace loyalty, build a caring culture, and enhance overall employee satisfaction while remaining cost-efficient for the organisation.
   
   
5. Microinsurance: Offers low-cost protection to underserved or low-income groups who may not be able to afford regular insurance. It provides essential cover against life or health risks, ensuring financial help during emergencies while keeping premiums highly affordable and accessible.

Give your employees, customers, or borrowers the security they deserve with thoughtfully designed group insurance solutions from us. Our plans make protection affordable and simple to manage while strengthening your organisation’s relationship with those who matter most. Here’s what we offer:

• Group Advantage Term Plus:A non-linked, non-participating renewable group term insurance plan that offers wide-ranging protection. It covers death, listed critical illnesses, terminal illness, and accidental death or disability. Organisations can choose a policy term of one year or less and select from flexible premium payment options, including single, yearly, half-yearly, quarterly, or monthly. 

Meet an advisor or request more details to secure your group with versatile protection today.

• Group Term Edge Plan: Your people are your most valuable resource. This plan helps protect them and their families from life’s uncertainties, allowing them to focus on their work without financial worry. It offers straightforward life cover and optional riders to match different risk needs. 

Speak to an expert to get started and show your team you care.

• Pradhan Mantri Jeevan Jyoti Bima Yojana: An affordable group term insurance plan under the Government of India’s initiative to provide life cover for all citizens. Simple enrolment and hassle-free paperwork make it easy to extend protection to every eligible member of your organisation or community. 

Enrol now with ease to empower your group with essential cover.

• Sampoorna Kavach Plan: A micro-insurance solution with a simple structure and hassle-free enrolment. Members just provide a health declaration without mandatory medical tests. Ideal for organisations seeking quick and accessible coverage for large groups. 

Connect with an advisor to provide easy entry-level security today.

• Group Asset Secure: Created for financial institutions and lending organisations, this plan protects customers against death, accidental death, terminal, and critical illnesses. With 12 coverage combinations, you can tailor benefits to match different loan types and tenures. Explore plan details to safeguard your portfolio and your customers now.
• Group Secure Plan: Designed to protect both lenders and borrowers, this plan covers outstanding loan liabilities in case of a borrower’s death. It helps families avoid debt burdens while securing the lender’s interest. There’s also a separate rebate for females and joint borrowers. Talk to our team to offer your group peace of mind and financial safety today.
• Group Traditional Plan: A non-linked, non-participating savings plan to fund retirement and employee welfare benefits such as gratuity, leave encashment, or post-retirement medical needs. It ensures long-term financial stability for employees while helping organisations plan responsibly.

  Learn more about supporting your team’s future with structured group insurance funding today.

The following types of groups can opt for group insurance:

To be eligible for group insurance plans, both the master policyholder and the members must fulfill certain criteria, which are as follows:

• Generally, organisations or groups should have at least 50 members to purchase a group insurance scheme

• Certain plans, such as Corporate Group Term Insurance, may cover companies with as few as 10 employees.

• The minimum entry age is typically 18 years, allowing adult members to be enrolled.

• The maximum entry age may vary by plan, depending on insurer rules and chosen benefits.

• Groups must have a genuine common link, such as employer-employee or association–member.

When purchasing a group insurance policy, the master policyholder must provide specific documents to ensure smooth issuance and compliance with regulations. The essential documents necessary to buy a group insurance scheme include:

• Policy Form: The primary application form where all details about the organisation, type of group, number of members, and chosen coverage options are recorded

• Proof of Address: Official documents such as Aadhaar card, passport, driving licence, or recent utility bills that confirm the organisation’s registered address

• Proof of Income: Financial records like audited statements, salary sheets, or bank statements demonstrating the organisation’s ability to pay premiums for the covered members

• Proof of Identity: PAN card, Aadhaar, voter ID, or driving licence, verifying the authorised signatory or representative of the group

Group Insurance Plans are flexible and cost-effective, but premiums can vary based on several factors. Understanding these elements helps organisations design coverage that fits their budget and needs. The factors that may affect group insurance scheme premiums are as follows:

1. Size of the Group: Larger groups usually benefit from lower premium rates because the risk is spread across more members. This broader distribution reduces the per-person cost, making comprehensive protection more affordable for both the organisation and its people.
   
   
2. Average Age Profile: The age mix within a group has a significant impact on pricing. Groups with younger members typically pay less since younger lives present a lower risk of claims, while older age profiles tend to increase premium amounts.
   
   
3. Nature of Work: Premiums can rise for groups involved in physically demanding or high-risk professions, such as construction or manufacturing. Safer work environments often enjoy lower rates due to reduced exposure to accidents or occupational hazards.
   
   
4. Sum Assured Level: Higher coverage amounts directly increase the premium cost because the insurer’s risk exposure rises. Organisations can balance affordability and adequate protection by selecting coverage levels that reflect their members’ income and financial responsibilities.
   
   
5. Optional Riders Chosen: Adding extra protection, such as accidental death, disability, or critical illness riders, enhances the plan but also slightly raises the premium. These add-ons increase the scope of benefits, offering greater security to members.
   
   
6. Claims History: A group past claims pattern influences pricing at renewal. Fewer claims may result in better premium rates, while frequent or high-value claims can cause an upward revision of future costs.
   
   
7. Policy Term and Renewals: Most group policies are renewable annually, and each cycle can bring adjustments based on updated risk data, member changes, and market conditions. Longer, stable associations may sometimes negotiate competitive terms.

Choosing the right insurer is essential when protecting a group of people. At Canara HSBC Life Insurance, we ensure that you choose us when it comes to purchasing group insurance schemes because of the following reasons:

• Backed by Years of Trust from India’s Largest Public Sector Banks: Canara HSBC Life Insurance is a joint venture between Canara Bank and Punjab National Bank, along with HSBC Insurance Asia Pacific Holdings Limited. Since 2008, we have been providing reliable life insurance solutions that help people secure their loved ones’ future with confidence and peace of mind.
• Standing Strong With Every Claim: We focus on making every step simple and supportive. From paying premiums to receiving benefits and filing claims, our processes are designed to be smooth and stress-free. Our death claim settlement ratio reached an impressive 99.43% in the financial year 2024-25, reflecting our commitment to stand by families when they need us most.
• A Brand Millions Call Happily Their Own: Our expertise is built on the deep understanding of customers gained through our partner banks and the global experience of HSBC. We have issued lakhs of policies and proudly serve millions of satisfied members who trust us with their protection needs.
• A Global Legacy of Happiness: We understand the changing financial priorities of families today. Our range of solutions includes Term Plans, ULIPs, Child Plans, and Group Insurance Plans, helping organisations and individuals build lasting security for every stage of life.