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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.

You may like to Read About: Saral Jeevan Bima Term Insurance

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.


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