Group term life insurance policy is a master policy taken by any organization for its employees. The life of an individual is a journey full of uncertainties. Nobody wants to face difficulties and mishaps, but sudden accidents or events affecting life badly are in nobody’s control. Also, an individual that works and earns doesn’t do it personally for him. It’s his family for which he struggles day in and day out but what if he meets with an accident or loses his life? There can’t be anything as unfortunate as this.
Therefore, organizations nowadays have started offering their employees life insurance policy to help their family, and their dependents if anything bad happen. Group-term life insurance policies not only provide the necessary help to the employees’ families in their time of need but also offer a stress-free life to the employee. It also strengthens the bond between the employer and the employee. It builds a stronger relationship of trust. Not only this, but it also offers tax benefits to the employer.
The functionality of the plan-
Group term life insurance scheme offers a lump sum amount to the nominee) whom the insured person selects) in case the employee dies. It is one of the best benefits provided by companies these days. A group term life insurance policy is also available to the workers at the time of joining. It is generally offered for a period of one year and then is renewed by the group holder. The amount of the policy is either based on the grade/salary of the employee or is similar for everyone. It is decided by the head of the organization. As it is a group insurance policy, therefore people are not required to undergo any medical test before taking this policy.
Why is it important?
A group-term life insurance policy has become a boon for any individual. It has surely become an important part of employees’ benefits. A person who works hard for an organization and helps the organization enrich should also be provided with benefits that will help him in his time of need. It also enriches the relationship between an employee and the employer. If God forbid an employee dies, the life of his/her dependents may affect as well. This group-term life policy acts as a lifesaver in such cases.
Not just employees, it benefits the employer as well. The appreciation of offering the workers such a nice thing is not the only thing as he also gets tax benefits. Also, as it is a master policy, therefore he can handle it with ease.
Organizations can add or delete members during the year as well. So, overall, it is a wonderful product to offer to the workers. It offers help as well as relaxation. Insurance has surely turned out to be a blessing for people. It provides that much-needed peace of mind which has disappeared from today’s world. Also, increasing stress and pollution have given rise to problems that already existed. The worst part is that due to high inflation rates, it has become very difficult for people to afford a normal life and simultaneously save for the time required as well.
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No savings puts additional pressure on any person who earns for his family as he constantly worries about the fact that what will happen if he/she stops earning or dies. This policy will act as a blessing for his/her policy if anything like that happens.
Multiple policies are available these days which has given rise to ambiguity as well. It suggested doing comprehensive research on any policy before selecting one. Insurance brokers like SecureNow offer all the information along with additional help as well. They also help with the documentation process and claim settlement policies.
So, if you are an owner of any organization, big or small, select the best policy that will suit your budget and start offering this benefit to your employees because after all, they are like your family!
