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Group Term Insurance

A Group term insurance plan is an insurance benefit frequently offered by employers to their employees. It is a group benefit provided to employees who meet certain eligibility criteria, such as being a permanent employee or after completing 30 days after their appointment, at no cost except on payroll deductions.

Group term insurance plan can also be offered by a non-employer to an employee like to a member of the same social group, for example. The key factor here is reduced cost or premium. Thus, many organisations or companies opt for this plan. The plans may also offer employees or policyholders’ coverage for their spouses and children. Group term insurance coverage can be adjusted annually during an open-enrolment or renewing period.

What is the Group Term Life Insurance Plan?

Group term insurance is:

A benefit often provided by employers to their employees, usually through payroll deductions
A single term insurance plan providing coverage to every single member in the group
There is tax benefits associated with it for employers in providing employees with the tax-free group term life insurance coverage
Many employers offer basic group term life insurance free of charge or any cost, from their employees
On leaving one’s job, the employee may have the option to convert a group term life insurance policy to an individual life insurance policy, but it could be more expensive for many employees, or the insurer may end the coverage for the particular employee

Types of Group Insurance Plans

These Group Term Life Insurance Policies can be classified as:

Group Health Insurance

These plans provide risk coverage to employees or group members, and certain insurers can also offer coverage to families of members or employees.
Group Personal Accident Insurance

This term insurance ensures employees against uncertain events related to a permanent total or partial disablement or injury or critical illness. It decreases financial burden for the insured and his or her dependents by providing full coverage in the event of sudden death or accident. However, it does not cover natural death or suicide and the likes. It can cover the cost of medical expenses except in case of a predetermined medication or ailment. These are also available to small and medium enterprise employees.

Group Travel Insurance

It covers the costs of any accident, damage, loss, or medical emergency during travel on a work basis. This can be divided into two categories, domestic and international, and can be utilised on a single trip or multiple trips.

These term plans are economical and comprehensive, below is a list of available Group Term Insurance Plans under these subheadings:

Group Health Term Insurance	Group Personal Accident Term Insurance	Group Travel Term Insurance
Aditya Birla Health Insurance	Aditya Birla Group Active Secure	Aditya Birla Group Activ Travel
Bajaj Allianz General Insurance	Bajaj Allianz Global Personal Guard Policy (Group)	Bajaj Allianz Group Business Traveller’s Insurance
Bharti AXA General Insurance	Bharti AXA Smart Group Personal Accident Insurance Policy	Bharti AXA Travel Assure – Group Overseas Travel Insurance
Cholamandalam MS General Insurance	Chola MS Group Personal Accident Insurance	Cholamandalam Group Domestic Trip Insurance
Digit General Insurance	Digit Group Personal Accident Policy	HDFC ERGO Group Travel Insurance
Edelweiss General Insurance	Future Generali Group Personal Accident	HDFC ERGO Health Group Travel Insurance
Future Generali General Insurance	HDFC ERGO Group Personal Accident Insurance	IFFCO Tokio Travel Protector
HDFC ERGO General Insurance	DFC ERGO Health Group Personal Accident Insurance	Religare Group Explore
HDFC ERGO Health Insurance	ICICI Lombard Group Personal Accident Policy	Tata AIG Group Travel Secure
ICICI Lombard General Insurance	IFFCO Tokio Group Personal Accident Insurance	Universal Sompo Travel Worldwide
IFFCO Tokio General Insurance	Kotak Group Accident Protect
Kotak Mahindra General Insurance	Liberty Group Personal Accident Policy
Liberty General Insurance	ManipalCigna Group Personal Accident
ManipalCigna Health Insurance	New India Group Personal Accident Policy
Navi General Insurance	Navi Group Personal Accident Insurance Policy
Oriental General Insurance	Oriental Group Personal Accident Policy
Reliance General Insurance	Raheja Group Personal Accident Insurance
Religare Health Insurance	Reliance Personal Accident Policy
Royal Sundaram General Insurance	Religare Group Secure
SBI General Insurance	Royal Sundaram Group Accident Insurance
Star Health and Allied General Insurance	SBI Group Personal Accident
Tata AIG General Insurance	Shri Group Personal Accident Insurance
Universal Sompo General Insurance	Star Group Accident Insurance Policy
	Tata AIG Group Multiguard Personal Accident
	United India Group Personal Accident Policy
	Universal Sompo Group Accident

Best Group Term Insurance Plans

The Best Group Term Plans are as follows:

Term Plan	Entry Age (Min- Max)	Policy Term (Min- Max)	Accidental Death Benefits	Critical Illness Benefits	Waiver of Premium	Terminal Illness
Aegon Life iTerm Plan	18-65 years	18-65 years	Paid	N/A	Paid	Free
Aviva iLife Plan	18- 55 years	18- 55 years	N/A	N/A	N/A	N/A
Bajaj Allianz eTouch Lump sum	18 – 65 years	18 – 65 years	Paid	Paid	Free	N/A
Birla Sun Life Protector Plus Plan	18-65 years	5-70 years	Paid	Paid	Paid	Include
Bharti AXA Term Plan eProtect	18-65 years	10-75 years	Include	N/A	N/A	N/A
Edelweiss Tokio Life My Term+	18-65 years	10-85 years	Paid	Paid	Paid	N/A
Exide Life Smart Term Plan	18-65 years	10-30 years	Paid	Paid	Paid	N/A
Future Generalin Flexi Online Term Plan	18- 55 years	10-65 years	Paid	N/A	N/A	N/A
HDFC Life Click 2 Protect 3D Plus	18 – 65 years	18 – 65 years	Paid	Paid	N/A	N/A
ICICI Prudential iProtect Smart	18 – 60 years	18 – 60 years	Paid	N/A	Free	Free
iSelect+ Term Plans	18-65 years	5-62 years	Paid	N/A	N/A	Paid
iSurance Flexi Term Plan	18-60 years	10-62 years	Paid	N/A	N/A	N/A
India First Anytime Plan	18-60 years	5-40 years	N/A	N/A	N/A	N/A
Kotak e- Term Plan	18-65 years	5-75 years	Include	Paid	Include	N/A
LIC E-term Plan	18 – 60 years	18 – 60 years	N/A	N/A	N/A	N/A
Max Life Online Term Plan Plus	18-60 years	18-60 years	Paid	N/A	Include	N/A
PNB MetLife Mera Term plan	18-65 years	18-65 years	Paid	Paid	N/A	N/A
Pramerica Family First Term Insurance Plan	18-50 years	10-30 years	Paid	Paid	N/A	N/A
SBI Life eShield Plan	18 – 65 years	18 – 65 years	Paid	N/A	N/A	N/A
SBI Smart Shield	18 – 60 years	18 – 60 years	Paid	N/A	Free	Free
Sahara Kavach	18-50 years	15-20 years	N/A	N/A	N/A	N/A
Shriram Life Cash Back Term Plan	12-50 years	10-25 years	Paid	Paid	N/A	N/A
SUD Life Abhay	18-65 years	15-40 years	Paid	N/A	N/A	N/A
TATA AIA Maha Raksha Supreme	18-70 years	10-40 years	Paid	N/A	N/A	Include

Disclaimer: Paisawiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

How to apply for the Group Term Insurance Plan?

Companies or groups can apply for Group Term Insurance Plans and policies, both online and offline by following these simple steps below:

Step 1: Start by choosing the amount for the term insurance cover for each member.
Step 2: Deciding the basic term cover or the benefit option according to the company's requirements and preference, consult a representative when in doubt.
Step 3: Read all terms and conditions fully understand the plan and then fill up the proposal form.
Step 4: Get a premium quote; the premium amount will differ from insurer to insurer depending on the plan's policy the company or group chooses, choice of insurance coverage amount and payment terms.
Step 5: Pay premium online or offline after informing the insurer Ensure to inform the insurer of any pre-existing ailment or health issues any of the employees may have been suffering from to reap maximum benefits.

Features and benefits of the Group Term Insurance Plan

Here is rundown to salient features and core benefits of the Group term Insurance Plans:

The group insurance plans are for tenure of one year; these are annually renewable
The sum can either be paid in a lump sum amount or linked to employees' salary account
The Group Term Insurance plan is a single plan that covers all members
Members can easily be added or removed from the Group term plan
Easy and hassle-free documentation
It benefits both employer and employee: employers are exempted from tax and employees are assured of financial assistance in case of any unfortunate event, sudden death or critical illness
An employee need not submit a medical fitness report for policy issuance

Comparison with Other Plans

Compared to other plans, in group term plans:

Members can be easily added or removed from the term insurance at any point of the year
The beneficiary is paid a pre-decided sum assured in the event of the sudden death of the insured
The policy can be provided to a minimum group of 10 to 50 members or employees
Terminal illnesses are also covered as a built-in benefit or add on rider, include cover for any critical illnesses, accidental deaths, disabilities, etc.
It is cheaper than an individual term insurance policy cover

Things to consider while buying the Group Term Insurance plan

One should consider the following while purchasing a group term plan:

The insurance cover amount

Based on the basic information of the group members or employees calculate the cover amount you need. Their age group, financial responsibilities, family members, basic lifestyle expenses, any loans, debt or mortgage amount, whether to account in inflation or rising costs, all changing variables.
Benefits offered or covered under the insurance plan

Learn about the benefits provided to not only employees but also to their beneficiaries. The amount an employer and employee may have to contribute to the premium. Discounts or reduced premium offers on renewing the policy on the members surviving the policy. Easy to claim and fast processing time during unforeseen events or emergencies at work.
The amount of premium required

The amount chosen for cover will decide the amount of premium required. Some insurers reduce the premium on plans with an increased number of employers or members added to the Group term plan. With time, as the term insurance plan is renewed annually, premiums may also increase, this should not be comparatively more than the sum assured.
Choose the right insurer

When deciding on the insurer, check for their claim settlement ratio, solvency ratio, financial background, and market reputation. With the internet being a powerful tool in hand, it is fairly easy, transparency is guaranteed.

FAQs

Q: Are all employees eligible for a Group Term Insurance Plan?

Ans: Yes, all employees depending on the coverage amount the employer decides, the age group, and job position considered for the term insurance plan.
Q: Are there group term plans for more than a month's duration?

Ans: The group term life insurance policy tenure is one year.
Q: Can an employee's family benefit from it too?

Ans: Yes, most group term plans come with add on benefits for employees and their families.
Q: Can I continue my group term insurance plan as an individual after leaving my job with the company?

Ans: Yes, some insurers may allow you to convert your group term plan to an individual term plan, but the premium might be higher.
Q: How can employers exempt from tax here?

Ans: The premium paid by employers is considered a privilege for the employees. Thus the employer can claim tax rebate under the income tax act considering the premium as a business expense; employers are exempted from paying tax.
Q: Do employees have to pay the premium too?

Ans: No, employers pay the premium amount for the employees, and these are added to employees' salary amount.
Q: How will the employee's family benefit from this policy?

Ans: If a sudden unexpected event occurs or death then the sum assured will be provided to the beneficiaries of the deceased employee. Depending on the premium amount contributed, the sum assured will be provided to the employee's family irrespective of whether the employee died before the policy expired.