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All that you need to know about Group Term Life Insurance!

Group health insurance is a unique benefit that is accessible to relatively small group of urban middle class. It’s claimed that 44% of Indians have health insurance (as of 2017), this includes government funded health insurance. Less than 5 % of the middle-class population is lucky to have access to group health insurance.

  1. What is group term life insurance?

    Group term life insurance is a type of life insurance offered to a group mostly in context of benefit offered to employees by the employer. This is intended to offer financial security to employees from any medical or health exigency.

    Usual group insurance benefits are provided as base sum insured at a special price point which can be 40%-60% of individual insurance product premium for similar sum insured; and some cases this will be coupled with optional supplement coverage usually self-paid immediately or via payroll deduction.

  2. Who are eligible to offer group tax life insurance?
    If organization meets the following criteria, the group health insurance can be offered.

    • You should meet the 10-employee rule. You have to be able to provide the insurance to at least 10 full-time employees. However, this applies for benefits such as ESIC. Private insurance usually willing to considered group size of 50 and above.
  3. Benefit of group term life insurance?
    Here are few benefits of a group life insurance:

    • Premium is much lower than the individual policies.
    • No medical check-ups are required
    • Can be customized as per the need of an employee, add- on covers are available for accidental death, education allowance and more.
    • Tax benefits for both employees as well as employers. Death benefits to employees are exempt from tax under section 10 (10 D) of income tax act, as per the tax law.
    • Provides a basic insurance coverage to all those who have no personal insurance policy.

    How Ethika can help you?

    It is highly important to choose a professional group term life insurance service provider to understand all the rules, regulations, terms and condition clearly. As a Licensed Insurance Broker from Insurance Regulatory and Development Authority of India, Ethika can help you with structuring the right policy for your employees. The Expert team will design, do the data analysis, educate, engage, reduce the claim costs and help your business grow! So, what are you waiting for? Contact Ethika today to get the most effective group term life insurance coverage.


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