What is a Group Term Insurance Plan?

Insurance Plan

If your employer is offering a group term life insurance, make sure you avail it! If you’re wondering why here is all you need to know. But before jumping into the various features and benefits, it is important to understand the meaning of a group term life insurance policy.

A group term life insurance ensures your loved one’s safety in case something happens to you in the future. It is a policy that provides financial support to your family to ensure their safety and security. It is designed to provide a monetary guarantee to the beneficiary of the employee who is insured and demises.

Eligible groups for a Group Term Life Insurance Policy

A group term life policy is offered to the following groups of people-

  • Employer-employee groups
  • Banks
  • Non-banking financial institutions
  • Non-employer and employee groups
  • Professional groups
  • Micro financial institutions

Varieties of group term life insurance policies

  • Uniform coverage for all members
  • Ranked covers for various grades of employees
  • Some plans provide cover for outstanding liabilities such as housing loans, car loans, etc.
  • Some plans have add-ons called riders like critical illness benefits, accident benefits, disability benefits, etc.

How is a group term life policy implemented?

  • Insurer to employee

With the demise of the employee, the sum assured is directly paid to the employee’s nominee after the submission of relevant documents.

  • Insurer to employer to nominee

The sum assured is paid through the employee to the demise’s nominee.

Benefits of buying a group term insurance plan

  • According to the Tax Laws, under Section 10(10D) of the Income Tax Act, 1961, employers can claim the premium paid for group term life insurance which in turn becomes a tax benefit for the employers.
  • Group Term Life Insurance policy covers can be supplemented with add-ons like education allowance, accidental death, critical illness, etc. This covers a multitude of benefits and makes your cover more comprehensive.
  • Under group term life insurance plans, employees don’t have to go through the hassles of medical check-ups.
  • Opting for a group term life insurance policy can not only attract top-notch talent but also contribute to their retention. Many companies are choosing a group term life insurance policy.

Reasons you should buy group term life insurance from Pazcare?

Single point of contact

You will be assigned with a dedicated SPOC to handle all employees and clear out queries from day 1. That prevents you or your employees to waste time here and there sorting queries.

Easiest claim process

Although the claim process differs here and there, Pazcare ensures to help you out at every level of your claim reimbursement journey. Pazcare takes the responsibility of getting the claims sorted for you.

Comprehensive Package

Apart from insurance, Pazcare provides a comprehensive package with additional perks such as health and wellness plans like therapy sessions, unlimited doctor consultations and much more! This allows your employees to not only feel secure but also enhances their overall personality.

The admin dashboard

The Pazcare admin dashboard makes endorsements, management and tracking of the policies easy for the employees. Everything you need to manage can be done within one platform!

The employee app

Pazcare has its employee app that makes the process way simpler and more accessible. Now you can manage your insurance wherever you go and whenever you want.

Fuss-free claim process

Pazcare stands in the queue for you so that you can sit back and relax as it makes the claim process much simpler and faster. You get to continue with your daily chores when Pazcare takes up the extra work for you.

HRMS integration system

To automate endorsements, the Pazcare dashboard is easily integrated into your HRMS. This way, HRs can manage the insurance way faster and easier.

Competitive costs at your convenience

Instead of getting a hole in your pockets, Pazcare provides the best quotes for group term life insurance. Unlike other group health insurance products in the market, Pazcare’s priority is its customers. So, the best prices are tailored for you.

You may also like...

Leave a Reply

Your email address will not be published.