Group term insurance plans are designed to provide life insurance plans to a group of people under one program. This policy is not only restricted to the employer-employee groups. Still, it is also expanded to other groups such as NGOs, the customers of banks, non banking financial institutions, professional groups, and microfinance institutions.
This policy is for employers to assure independence and financial assistance to the beneficiaries of the concerned employees in the event of their death. It provides various benefits, from uniform coverage to the ranked range over the several grades of members.
Some of the insurance schemes also offer covers for the outstanding loans to the borrower’s groups, whereas some come with disability and critical illness benefits.
Pros made by the group term life insurance plan
Get a complete understanding of benefits by reading the following parts of the group term life insurance plan.
1.Default insurance cover
A group term life insurance plan gives the insurance cover to the members by simply making them part of the entire group. It makes sure the primary hindrance to providing coverage to those who are not having their life insurance policy.
Employers are associated with the systematic method to generate the funds for their future gratuity liability for the employers. This policy can assist the employers with the same, along with giving life insurance cover to the employees.
Group term life insurance plans provide tax benefits to employees as well as employers. According to the prevailing tax laws, death benefits are exempt from tax under the income tax act. In simple words, this savings plan is effective in the form of employer welfare and retention.
4.Customizable to suit employer requirements
This coverage of this policy can be expanded with the added ones such as repatriation, education allowance, accidental death, etc., in this way, and it covers the multitude of benefits with the base coverage.
5.No medical checkups
The best thing about the group term life insurance plan is that it gives relief from the hassle of medical checkups.
This group plan entails insurance coverage for many people. It is the more innovative way that is used to avail insurance protection against multiple risk factors. The premium of the group term life insurance plan is generally lower than the premium of the individual policies. It is suggested to start with the right group plan.
In such circumstances, we can say that this insurance plan is cost-effective for a group of people.
In this guide, you get all the relevant information on the group term life insurance plan. Here the focus is on the benefits of the group term life insurance plan. Hope you understand every gift clearly.
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