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 members of a group. In most cases, offers the group discount as per the size of the group at the inception of the policy.
Read More: Types of Group Insurance Policies For Small & Medium Enterprises
There are various benefits, 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, used to pay gratuity to eligible employees.
Annuity –
It is a useful feature of group insurance policies that ensures peaceful retirement life. Therefore, availed by employees by accumulating a premium over the period. Given to them as a 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 the death of the member. It is mainly offered to loan customers or credit cardholders. 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, 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 this policy.
Safeguard you against accidents and disability –
As the incidences of accidents increased in the country, designed the policy 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, also gives financial relief 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 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, 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 a 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 the premium of your group insurance schemes –
Size of the coverage –
The benefits offered by group insurance policies are directly proportionate to premium rates. So, any extra coverages added to the policy will invite extra premiums 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 the high-age bracket may have to pay more premiums. As compared to those groups who have young members.
Claim history –
If made more claims in the previous policy tenure, the insurer increase premium rates at the time of policy renewal.
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.
