Group Term Life Insurance Online

Provide peace of mind to your employees.

Providing peace of mind to your employees

Financial security to your employees and their family members

Group Term Life Insurance Online

Provide peace of mind to your employees.

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Simplifying group term insurance plan

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Online Portal to view all group policies. Add/Delete Employees. Claim Status view.

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Online Portal to view Claim Status & Policy Details. File a new claim.

Best group life plans at best price

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Sum assured 1 - 10 times of salary

No medical test

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Tax benefit for employers & employees

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Default coverage for all employers

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Customized plans

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Age from 18 - 70 years

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Annually renewable

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Premium atleast 50 % lower than retail life policy

What is Group Term Life Insurance?

Group Term Life Insurance is a type of life insurance coverage that is provided to a group of people, typically employees of a company or members of an organization. This type of insurance is often offered as part of an employee benefits package.

Who is eligible to avail group term life insurance policy?

Group term life insurance is offered to several categories of working class such as:

  • 1. Employee-employer groups
  • 2. Non-employer – employee groups like associations, cooperative societies, Banks, Non-banking financial institutions, Professional groups, and Micro finance institutions
The term insurance eligibility criteria can vary for each of these groups, subject to the basic requirements for having insurance. While some plans may offer basic and uniform coverage to all the members of the plan, others may offer a CTC based or graded coverage based on the professional ranking or position of the members included in the plan.

What are the features of a Group Term Life Insurance plan?

  • Group Coverage:Group Term Life Insurance plan covers a group of individuals, and the policy is typically owned by the employer or the organization. A master policy is created in the name of Employer or an organisation and their respective employees or members are added as an annexure to the issued Master Policy.
  • Term Insurance:Group Term Life Insurance provides coverage for a specified term, usually one year. At the end of each term, the policy can be renewed, and coverage may continue as long as the individual remains part of the group.
  • Eligibility Age for Individual members: The minimum entry age is 18 years and the maximum ranges between 65-70 years.
  • Death Benefit: In the event of the death of an insured individual during the coverage period, a lump-sum payment, known as the death benefit, is paid to the designated beneficiaries. This can provide financial support to the family or dependents of the deceased.
  • Employer-sponsored: Group Term Life Insurance is often offered as part of an employer's benefits package. The employer may pay for the basic coverage, and employees may have the option to purchase additional coverage or coverage for their dependents through the group plan.
  • Simplified Underwriting: Group policies usually have simplified underwriting processes, making it easier for individuals to qualify for coverage compared to individual life insurance policies. Group term life insurance policies often underwrite based on the overall characteristics of the group, taking into account factors such as average age, industry type, and historical claims data. This approach allows insurers to assess risk at a group level rather than on an individual basis.
  • Portability: In some cases, individuals may have the option to convert their group coverage to an individual policy if they leave the group, retire, or experience a change in employment status. This is known as portability.
  • Cost-effective: Group Term Life Insurance is often more cost-effective than individual life insurance because the risk is spread across a larger pool of individuals. Group pricing tends to be lower, making it an attractive option for both employers and employees.

What are the features of a Group Term Life Insurance plan?

Automatic enrolment in group term life insurance refers to the process where eligible individuals are enrolled in the life insurance plan by default, without having to take any specific action to sign up for the coverage. This practice is often implemented by employers who offer group term life insurance as part of their employee benefits package.
Here's how automatic enrolment typically works:

  • Eligibility Criteria:Employees who meet certain eligibility criteria, such as full-time status or a specified waiting period, are automatically enrolled in the group term life insurance plan.
  • Default Coverage: Automatic enrolment usually comes with a default coverage amount, which is the amount of life insurance that an employee will receive without making any specific choices. This default coverage is often a baseline level that the employer determines.
  • Notification: Employees are typically informed about the automatic enrolment process through communication from the employer, such as employee handbooks, informational sessions, or written notices.
  • Contribution and Costs: In some cases, employees may be required to contribute to the cost of the life insurance coverage, even if they are automatically enrolled.
Automatic enrolment is designed to ensure that eligible employees have access to life insurance coverage without the need for proactive steps. It aims to increase participation rates in employer-sponsored life insurance plans, as employees are enrolled by default. This can be a valuable tool in promoting financial protection for employees and their families.

What are the premium payment options in a Group Term Life Insurance?

Premium Structure (Contributory vs. Non-Contributory)
Premium payment options for group term life insurance policy can vary depending on the insurance provider and the specific arrangements made by the employer offering the coverage. Here are common premium payment options associated with group term life insurance:

  • Employer-Paid Premiums: Full Employer Coverage: In some cases, the employer may cover the entire cost of the group term life insurance premiums. This means that employees do not have to make any contributions, and the employer bears the full financial responsibility for providing life insurance coverage.
  • Voluntary Employee Contributions: Some group term life insurance plans are entirely funded by employees on a voluntary basis. Employees who wish to participate in the coverage are required to pay the entire premium amount.
  • Combination of Employer and Employee Contributions: Cost-Sharing Arrangement: Employers and employees may enter into a cost-sharing arrangement where both parties contribute to the premium payments. This could involve a fixed split or a more flexible arrangement based on the percentage of coverage or salary.

What are the benefits to employers for buying Group Term Life Insurance cover?

Employers can derive various benefits from providing group term life insurance coverage to their employees. Here are some of the advantages for employers:

  • Employee Welfare:Attraction and Retention: Offering group term life insurance is a valuable employee benefit that can help attract and retain talented professionals. It enhances the overall compensation package, making the company more competitive in the job market.
  • Financial Security for Employees (Family Protection): Group term life insurance policy provides financial protection to employees' families in the unfortunate event of the employee's death. This can be especially important in India, where family support is significant, and the loss of a breadwinner can have substantial financial implications.
  • Employee Morale and Loyalty (Sense of Security): Knowing that their employer cares about their well-being and the well-being of their families can boost employee morale and loyalty. It contributes to a positive work environment and fosters a sense of security among the workforce.
  • Tax Benefits (Tax Deductions): Premiums paid by the employer for group term life insurance coverage are typically tax-deductible as business expenses under the Income Tax Act. This can result in tax advantages for the employer.
  • Compliance with Labor Laws: Statutory Compliance: In some cases, providing certain employee benefits, including group term life insurance, may be a requirement to comply with labor laws and regulations. Employers who offer such benefits demonstrate compliance with legal obligations.
  • Reduced Financial Burden on Employees: Cost-Effective: Group term life insurance is often more cost-effective than individual policies due to economies of scale. This allows employers to provide substantial coverage to a large number of employees without incurring exorbitant costs.
  • Enhanced Employee Productivity: Peace of Mind: When employees feel secure about their financial well-being and that of their families, they are likely to experience reduced stress and anxiety. This, in turn, can positively impact their focus, productivity, and overall job satisfaction.
  • Flexible Plan Options: Customization: Employers can often customize group term life insurance plans to suit the needs of their workforce. This may include the ability to offer additional coverage options or allow employees to purchase supplementary coverage.
  • Competitive Edge in Recruitment: Differentiation: Providing comprehensive benefits, including group term life insurance, can set an employer apart from competitors in the job market. It demonstrates a commitment to employee well-being, which can be an attractive factor for potential hires.

What is the policy tenure in Group Term Life Insurance policy?

Group term life insurance policies commonly follow an annual renewal cycle. At the end of each policy year, the employer has the option to renew the policy for another year. This allows for flexibility in adjusting coverage levels or terms based on the changing needs of the organization.

How is the Group Term Life Insurance Cover Terminated?

Coverage Termination: The policy may terminate if the employer decides not to renew or discontinue the group term life insurance coverage. Additionally, coverage for individual members may cease if they no longer meet the eligibility criteria (e.g., termination of employment).

What are the medical Tests Requirement for Group Term Life Insurance cover?

The requirement for medical tests in group term life insurance coverage can vary based on the insurance provider, the size of the group, and the specific terms negotiated by the employer. Here are some common scenarios regarding medical tests for group term life insurance plan:

  • No Medical Tests: For many group term life insurance policies, especially those covering large groups of employees, insurers may offer coverage without requiring individual members to undergo medical tests. The underwriting process for group policies often relies on general information about the group rather than detailed individual assessments.
  • Medical Underwriting for Larger Coverage Amounts: While basic coverage may not necessitate medical tests, some insurers might require medical underwriting for higher coverage amounts or for specific individuals who exceed certain thresholds. This ensures that the insurer has a clear understanding of the health risk associated with providing higher coverage.
  • Underwriting Based on Group Characteristics: Group term life insurance policies often underwrite based on the overall characteristics of the group, taking into account factors such as average age, industry type, and historical claims data. This approach allows insurers to assess risk at a group level rather than on an individual basis.

What are the Tax Benefits under Group Term Life Insurance Policy?

The employers can avail tax benefits on the premiums paid for group term life insurance policies as a business expense. Here are the key tax benefits available to employers:

  • Deduction under Section 37 of the Income Tax Act: Premiums paid by the employer for group term life insurance coverage are considered a business expense and are eligible for deduction under Section 37 of the Income Tax Act. This section allows businesses to claim deductions for any expenditure incurred wholly and exclusively for the purpose of carrying on their business.
  • Tax Deduction on Premiums: The entire amount of the premiums paid by the employer for group term life insurance is deductible as a business expense. This deduction can help reduce the taxable income of the employer, resulting in lower income tax liability.
  • No Taxable Benefit for Employees: Group term life insurance plan provided by the employer to employees is generally not considered a taxable benefit for the employees. This means that the premium payments made by the employer on behalf of employees are not treated as taxable income for the employees.
  • Compliance with Tax Regulations: Ensuring that the premiums paid for group term life insurance policy comply with the guidelines and regulations set forth by the Income Tax Act is crucial. Employers should maintain proper documentation, including records of premium payments, policy details, and other relevant information, to support their claims for tax deductions.
  • Conditions and Limits: Employers should be aware of any conditions or limits imposed by tax authorities regarding the deductibility of insurance premiums. It's important to stay informed about changes in tax laws that may impact the eligibility for deductions.
  • Tax Planning: Employers may engage with tax professionals or consultants to optimize their tax planning strategies, ensuring that they maximize the benefits available under the Income Tax Act. This may involve considering the timing of premium payments and coordinating with overall financial planning.

What are the various Add On covers available for Group Term Life Insurance Policy?

Add-on covers, also known as riders or endorsements, in Group Term Life insurance provide additional benefits or coverage enhancements beyond the basic life insurance policy. The availability of add-on covers may vary among insurance providers, and employers can choose the ones that best suit the needs of their workforce. Here are some common add-on covers that may be available in Group Term Life insurance plan by Policynation.

  • Accidental Death Benefit (ADB): This cover provides an additional sum assured in the event of the insured's death due to an accident. The benefit is usually in addition to the basic life insurance coverage and is payable if the death occurs within a specified time frame after the accident.
  • Permanent Disability Benefit: In the case of permanent disability resulting from an accident, this cover provides a lump sum payment to the insured. The definition of permanent disability and the conditions for claim eligibility may vary among insurance providers.
  • Critical Illness Cover: This add-on cover provides a lump sum payment if the insured is diagnosed with a critical illness specified in the policy, such as cancer, heart attack, or stroke. The funds can be used to cover medical expenses and other financial needs during the treatment period.
  • Hospitalization Cash Benefit: In the event of hospitalization due to illness or accident, this add-on cover provides a daily cash benefit to the insured. The benefit is designed to help cover incidental expenses associated with hospital stays.

What is the Master contract under Group Term Life Insurance Policy?

A "Master Contract" refers to the primary agreement or policy between the employer (policyholder) and the insurance provider. This master contract outlines the terms, conditions, and specifications of the group term life insurance policy provided to the employees of the organization. Here are key components typically found in a master contract for group term life insurance:

  • Policy Terms and Conditions: The master contract includes detailed terms and conditions governing the group term life insurance policy. This section outlines the rights and responsibilities of both the employer and the insurance provider.
  • Coverage Details: Specifics about the coverage provided under the group term life insurance policy are outlined, including the sum assured, eligibility criteria for employees, and any restrictions or limitations.
  • Premiums and Payment Terms: The master contract specifies the premium amounts, payment frequency, and any other financial considerations related to the group term life insurance policy. Employers may contribute to premiums, and the contract details how these financial arrangements work.
  • Add-On Covers and Riders: If the group term life insurance policy includes add-on covers or riders (such as accidental death benefits or critical illness riders), the master contract outlines the terms and conditions for these additional benefits.
  • Underwriting and Medical Tests: Details regarding the underwriting process, including whether medical tests are required for employees, may be included in the master contract. This section outlines how the insurer assesses the risk associated with the group.
  • Renewal and Termination Clauses: The master contract specifies the duration of the policy, renewal procedures, and conditions under which the policy may be terminated. This could include circumstances such as the employer discontinuing the coverage or changes in the group composition.
  • Claims Process: Procedures for filing and processing claims are outlined in the master contract. This section provides information on how beneficiaries can initiate a claim in the event of an insured employee's death.
  • Conversion and Portability Options: If the master contract includes options for converting group coverage to individual policies or porting coverage when employees leave the organization, these details are typically included.
  • Compliance and Legal Requirements: The master contract ensures compliance with relevant insurance laws and regulations in India. It outlines the legal framework within which the group term life insurance policy operates.
  • Communication and Documentation: The master contract may include provisions related to communication between the employer and the insurance provider, as well as the documentation required for policy administration.
Employers should carefully review the master contract before implementing a group term life insurance policy, ensuring that they understand the terms and conditions, coverage details, and any other important provisions. Additionally, legal and insurance professionals may provide guidance to ensure compliance with applicable regulations and to address specific organizational needs.

How to add or delete employees under a Group Term Life Insurance Policy?

Adding or deleting employees under a group term life insurance policy typically involves a process facilitated by the employer in collaboration with the insurance provider. Here are the general steps employers may take to add or delete employees from the group term life insurance policy:

  • Adding Employees: Employers submit the required employee data on a monthly basis to the insurance provider. This data may include the employee's name, date of birth, gender, salary details, and any other relevant information needed for underwriting. Upon approval, employers communicate the inclusion of new employees in the group term life insurance policy. Employees may receive confirmation and details about their coverage, including the sum assured and any applicable riders.
  • Deleting Employees: When an employee leaves the organization, employers typically receive notification of the termination or resignation. This information triggers the process of removing the employee from the group term life insurance coverage. Employers submit the necessary termination information to the insurance provider. This may include details such as the last working day, reason for termination, and any other relevant information required by the insurer.
  • Adjustment of Premiums: The insurance provider adjusts the premiums based on the change in the number of covered employees. Premiums are typically calculated based on factors such as the number of employees, their ages, and the sum assured.

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Absolute breeze from buying our group health policy to filing of our claims, Policy Nation has really UNCOMPLICATED the whole process. Kudos to the team PolicyNation for defining group health insurance.

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Policy Nation has simplified the process of providing the best possible health insurance for our employees. We get timely support for all our claims. We are happy to have chosen Policy Nation for our insurance needs.

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We have been associated with Team Policy Nation for 5+ years and it has been a delight working with them. They are very delivery focused and customize their offerings to our requirements. Team Policy Nation consistently reinvent themselves to make life simpler and easier for us without compromising on our need of cost efficiency.

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We have been using policy nation's services for a year now. They are knowledgeable and experienced and have helped us navigate the field of employee insurance and office insurance. Every case & claim is treated with care. We are very happy having them as our insurance partners.

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