A type of insurance coverage offered to a group of people. This coverage will provide a monetary benefit to the beneficiaries if the covered individual dies during the defined covered period.
As with other types of group benefits, group term life insurance is generally cheaper than individual policy coverage. For this reason, the group term life insurance is often a key component in employee benefit packages.
The premiums are based on the company’s deaths experience, proposed sum assured, range of employees’ ages and the occupation of the employees.
Most of us do not use insurance as a risk management tool. Insurance is still used to save taxes or make savings. Therefore, most of us buy investment-based plans, which have a meagre sum assured. In case of untimely death of a person these policies are unable to provide enough corpus, which can replace the income of the person.
A Group Term Life cover supplements the sum assured taken by an employee and provides financial relief to the family in case of the employee’s untimely death.
Insurers require the following information for each member of the group:
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