In the bid to attract and retain top talent, modern organizations now look for innovative retention and loyalty-building tools. One of the most effective and helpful among these is group life insurance. It helps an organization offer a sort of financial stability to the dependents of their employees.

But what is a group insurance policy? These 4 points will help you understand them better-

1. What is Group Life Insurance?

As the name suggests, a group life insurance policy offers life cover to a group of people. So, it can be purchased for employees of a company, members of an association, non-profit organizations, consumer groups, and many different types of self-interest groups.

It is a single life insurance policy that covers multiple members. In case of an unfortunate event, the family members of the individual covered under one such policy will receive a lump sum death benefit.

2. Who is the Master Policyholder in Group Insurance?

The Master Policyholder, also known as Policy Administrator, is the one who has purchased a group insurance policy. So, in case the policy is purchased by an employer for their employees, the employer will be the Master Policyholder.

It will be the responsibility of the Master Policyholder to pay premiums regularly for keeping the life cover valid. The premium can either be paid annually, half-yearly, quarterly, or even monthly.

3. What are Coverage Options Available?

With group term insurance, there are two coverage options available- graded or flat. If all the different employees covered under a group plan have different coverage amounts, it is known as a graded coverage.

Financial liabilities or salary of the employee are taken into consideration in the case of graded coverage. Flat coverage is when all the employees have the same coverage amount.

4. What are the Benefits of Purchasing Group Insurance?

Group insurance is an excellent way for employers to offer financial assistance to the family members of an employee in case of their unfortunate death.

Moreover, employers can also claim tax deductions on the premiums paid for such policies as per the prevailing tax laws. Not to forget the fact that benefits like group insurance increase the credibility of an employer and work as a powerful retention tool.

Explore the Several Benefits of Group Life Insurance

Group life insurance offers several valuable benefits for the Master Policyholder as well as to the members covered under the policy. If you are an employer or head of an association or non-profit organization, do consult a top insurer to know more about group insurance policies.

Learn more about our online life insurance plans.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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