As the term itself says, a group insurance policy is designed to offer insurance cover to various groups of people, like employers-employees, professionals, cooperative societies, credit card holders, etc. The main motive is to offer insurance cover to people at low premium rates. Most of the insurers in India have come up with group insurance policies, therefore, further customized as per the specific requirements of groups. All the benefits of a group insurance scheme are available to people irrespective of their age, socioeconomic background, and profession as long as they belong to the group that is buying a group insurance scheme.
There are various benefits available with a group insurance scheme. Let’s have a look:
1. Comprehensive insurance cover=
Almost all group insurance plans available in India offer automatic insurance cover for members of the group as long as they remain part of it. It proves to be useful for those people who can’t afford to purchase individual insurance policies. However, it is necessary to note that these insurance policies cease to exist once you leave the group so make sure that you purchase policies once you leave the group.
2. Low premium=
As the risk is evenly distributed over the entire group, premium rates of group insurance schemes are much lower as compared to individual plans. Note, various factors are deciding the premium rates, like average age group, professional hazards, etc.
3. Ease of payment=
Even if the group cover is not available as free of cost, the premium is deducted from the salary of the employee or bank account, in case it is offered to a group of employees or credit cardholders. In this way, there is no hassle of payment or missing the premium due date.
4. Tax benefits=
It means the employer gets tax benefits on a group policy offered to its employees. Hence, all the payments made by the employer towards the group insurance policy will be considered as business expenses and will not be considered as profits for the purpose of taxation. Also, tax benefits are available in case policies are offered to a non-professional group. In addition to this, such schemes have the additional advantages of boosting an employee’s morality. These plans also enhance the loyalty of employees since not an employee looks after the plans, but also towards the welfare of his/her family. Thus, it is a win-win situation for both the employee and employer.
5. Professional expertise and asset management=
Such group insurance schemes deal with gratuity and annuity, however, managed by the experienced and professional experts of the insurance company. Thus, offer greater returns to members who are covered under the policy.
See: Types of Group Insurance Schemes available for SMEs
6. Rider options=
It is possible to expand the group insurance coverage by adding riders at a nominal premium amount. For instance, riders like critical illness, personal accident, etc.; thus, attaching to a main group insurance cover to increase the coverage.
Group Insurance Schemes Vs Individual Insurance Schemes
Group Insurance Schemes | Individual Insurance Schemes |
| As the insurance contract draws in the name of the group, and thus, cannot use the same for purposes like loans, etc. | As the insurance policy draws in your name, it serves as an asset and thus, can use for purposes of the loan, etc. |
| Your coverage solely depends on the provider who has all rights to trim or cancel it | Only you can decide to discontinue the insurance policy |
| It is cheap | It is expensive |
| Medical tests do not require certain coverage | Medical tests are almost mandatory before buying an insurance policy |
| Deducts Premium directly from salary, in case of corporate insurance plan | Premium has to pay individually |
Thus, taking a group insurance cover accords many benefits. If you like to buy a group insurance scheme, you can approach corporate insurance advisors, like SecureNow which can help you find the right policy at affordable premium rates.
About The Author
Himanshi
MBA Insurance Management
With over 8 years of dedicated experience in the insurance industry, Himanshi has established herself as a leading expert in group insurance. As a prolific writer for SecureNow, she produces informative and engaging blogs and articles that shed light on the intricacies of group insurance, helping businesses and individuals make informed decisions about their coverage options. Throughout their career, Himanshi has developed a deep understanding of various aspects of group insurance, including employee benefits, policy selection, and risk management. Their expertise allows them to translate complex insurance concepts into clear, actionable insights, making their content an essential resource for readers looking to navigate the world.
