What all benefits can be covered under a group insurance policy?

As the term itself says, a group insurance policy offers insurance cover to a group of people, which can be employers-employees, professionals, cooperative societies, and certain other sections. The benefits of group insurance policies are available to people irrespective of their age, economic background as well as profession as long as they remain the member of a group. In most of the cases, the group discount is also offered as per the size of the group at the inception of the policy.

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Read More: Types of Group Insurance Policies For Small & Medium Enterprises

There are various benefits which can be covered under group insurance policies, so if you are looking for a policy, take the cue from the following list –

  • Term Insurance – In the case of the untimely demise of any of the members, his/her nominee is entitled to get a fixed amount. It ensures that your death doesn’t derail the financial planning of your loved ones.
  • Saving tool – Some group insurance policies come with an additional benefit of savings which can be used to create wealth over a long duration while retaining the insurance cover.
  • Gratuity – An employee who completes five years in an organisation becomes eligible to get gratuity. A group insurance policy offers various investment options to organisations so that they can create a corpus which can be used to pay gratuity to eligible employees.
  • Annuity – It is a useful feature of group insurance policies which ensures peaceful retirement life. It can be availed by employees by accumulating premium over the period, which is given to them as pension at the current NAV at the time of retirement.
  • Protection of credit – Such group insurance policies take care of outstanding loans or dues in case of death of the member. It is mainly offered to loan customers or credit card holders. It ensures that your family will not face any financial hardships in repaying your liabilities in your absence.
  • Protection against rising ailments – As the medical cost has increased to a new height, a group health insurance helps you deal with rising hospitalisation costs. The policy is available at low or no cost. There is no need to pay any additional expense unless anyone opts for some extra covers that are not offered to all the members. With group health insurance packages, every member is eligible for the insurance package, it is because, with group schemes, the process of underwriting, wherein the insured’s health is closely examined, is usually waived off. As a result, it is a lot easier to get coverage under group health insurance.
  • Safeguard you against accidents and disability – As the incidences of accidents have increased in the country, it is a policy which is designed to offer financial protection to the insured who suffers bodily injury as a result of an accident, which is external and violent. It means, the policy doesn’t cover death/injury caused due to the disease. A group insurer also covers all types of disabilities, i.e., permanent total and partial. In some cases, financial relief is also given to an insured member if he/she undergoes treatment at the hospital.

Read More: Types of group insurance schemes available for SMEs

  • Secure travel – Whether it is a leisure or business travel, travelling has become an important part of our life. The fact is, travelling in India or abroad comes with its share of risks and responsibilities, a group travel insurance policy plays a crucial role by covering people who are travelling internationally. Such policies cover a wide range of risks like loss of baggage/passport, personal accident, flight cancellation, etc. Then there are annual multi-trip insurance policies which are specifically designed for frequent travellers. Such plans cover multiple trips taken in one policy
  • Liability coverage against workers’ injury – No matter how safe your working space is, accidents can happen. To protect your organisation from the threat of expensive lawsuits and high compensation, you can buy workmen’s compensation insurance policy. This policy offers legal liability coverage to employers who can demonstrate their ability to satisfy the obligations imposed under the Workmen’s Compensation Act of India, monitored by the Ministry of Labour.

As per your business nature, you can buy a group insurance policy, provided the number of members is above 25 (vary as per the policy and from one insurer to another) and customise it as per your requirements.

Here are some of the factors which will define premium of your group insurance schemes –

  • Size of the coverage – The benefits offered by group insurance policies are directly proportionate to premium rates. Any extra coverages add to the policy will invite extra premium as well.
  • Duration of the cover – How long your group insurance policy will remain valid help in deciding the premium rates.
  • Age of the member – Those groups whose members belong to high-age bracket may have to pay more premiums as compare to those groups who have young members.
  • Claim history – If more claims have been made in the previous policy tenure, the insurer will increase premium rates at the time of policy renewal.

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