Should I Solely Rely On Group Term Plans?

What All Group Life Insurance Covers?
How Group Life Insurance Functions?
Conclusion

A group life insurance is an insurance plan offered by the company or employer to its employees. The insurance offers financial security to the employees and their family members in case of any unfortunate incident. One major advantage of group life insurance is that it usually has lesser coverage cost compared to individual insurance policies, as it is offered in bulk. The insurance policy only covers death and offers no maturity benefit.

What All Group Life Insurance Covers?

Provides comprehensive and defined coverage to members who represent a particular profession, such as trade, NGOs, organisation. The insurance covers:

Death
Terminal illness

How Group Life Insurance Functions?

Let us understand how this insurance works:

Select the cover and its amount decided by each member of the group
Employers can choose the coverage amount from different benefit plans
To commence the policy, premium has to be paid beforehand. The risk coverage is for the duration of one year since it has been started.
On untimely demise of a member, the next signed beneficiary from his/her family gets the benefits

Eligibility Criteria

Group life insurance policies are offered to the following sections:

Employer-employee groups
Banks
Non-Banking financial institutions
Micro finance

Documents Required

The organisation needs to be intimated about the death as early as possible. The beneficiary also needs to ensure they submit the required documents for smooth claim settlement:

Duly filled in claim form
Certificate insurance
Hospital certificate
FIR (In case of accident)
Death certificate
Identity, address proof of the nominee of the insured

Exclusions

The group life insurance policy will be excluded if the policyholder dies due to suicide. In this case, the insurance company will only be liable to pay 80% of the single premium paid.

Conclusion

Life insurance coverage is the safety net which covers your family while providing you with the greatest assurance of them all- safeguarding your family’s financial future by granting adequate protection from the unexpected. Hence, it makes sense to get yourself an individual term life insurance coverage even if you might already have been covered under a group plan.

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.