As per government and regulatory norms, insurers are required to pay stamp duty for GTL policy. The calculation of stamp duty amount is as defined under – 1. Stamp duty of INR 0.20 per INR 1000 of the sum insured. 2. Stamp duty is to be paid for every new GTL policy. 3. On renewal […]
Group Term Life Insurance
What affects the Premium of Group Term Life Policies?
A group term life policy is purchased by an organization, to cover a minimum number (group) of employees. The very nature of the group term life policy affects the premium amount. An employer usually chooses to cover all insured members under the same risk and therefore, pays a lump-sum premium to the insurance company. It […]
Why Premium is Lower in Group Term Policy Than Individual Term Policy?
The premium for the group term policy is dependent on various factors, like the number of people insured in the group, the average sum insured per person, the average age of the group members, the occupational risk of the group, etc. Insurance premium consists of three components: Risk Premium Loading for Office Expenses Investment Component […]