Group Insurance
Group Insurance covers and protects a group of people. Such a group can be members of a professional association or a society or employees of an organization. Group Insurance can offer life cover, health cover, and other types of personal insurance.
Almost all insurance companies have introduced group insurance policies to meet the insurance needs of specific groups. Everyone in the groups shares the cost of a group health plan. As employees pay a portion of their own health insurance premiums and the employer pays a portion of the employee health insurance premiums.
Group insurance has many advantages and major among which is a life cover made available to members irrespective of age, gender, socio economic background or profession, so long as they belong to the group that is applying for insurance. Group term life insurance schemes offer financial independence to the concerned employee’s family in the event of mishappening like death etc. It also provide monetary guarantee to the beneficiary of the insured under the group term life insurance plan in the case of death of the insured.
Some group plans may offer uniform covers to all of its members while some plans offer ranked covers for various grades of members. In the same manner, some schemes provide cover for outstanding housing loans, car loans, etc. and some schemes have riders like critical illness benefits, disability benefits and accident benefits etc.
Features of Group Life Insurance
Group life insurance is very popular and has a lot of attractive features which make them ideal for employee benefit packages. Following are the features of group life insurance schemes:
i. The minimum size of the group is 50 members.
ii. More members can be added at any time
iii. Group life insurance is cheaper than individual policy cover
iv. A pre decided sum assured is paid to the beneficiary of the insured in case of death.
v. Add on covers are provided as riders insuring the critical illnesses, accidental deaths etc.
vi. Application process in Group life insurance is quick and easy
vii. Terminal illness is provided as a built-in benefit in group life insurance.
Type of Group Medical Insurance
Group Medical Insurance
It is a very popular insurance plan providing many benefits. It may include even pre-existing diseases. There is no waiting period for a certain disease to be covered. Customized insurance coverage can also be enjoyed only with a medical insurance scheme.