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What are the Different Benefits of Group Insurance Policies You Need to Know About?

Group Insurance Plan

A group of people can be covered using a Group Insurance Policy. Group plans are less expensive than individual policies, and the cost of insurance is significantly lower. A single master life insurance policy will offer insurance coverage to a group of people. Employers are obligated to provide insurance to their employees, and, as a result, they frequently give group insurance for employees. Employees' sense of loyalty can increase due to insurance coverage, which leads to increased production.

What is Group Term Life Insurance?

Every company has rules in place to ensure the well-being of its personnel. This is why they opt for Group Term Life Insurance. It provides insurance coverage to employees at reduced prices for individuals who may find obtaining individual plans difficult. The majority of group insurance policies allow you to tailor them to the unique needs of the numerous groups to whom they are targeted. These insurance plans are offered to all group members. Some of the different types of group insurance are :

  • Health Insurance for Groups
  • Group Term Life Insurance
  • Personal accident insurance for a group
  • Insurance for workers' compensation
  • Public Liability Insurance
  • Travel insurance for a group

Benefits of Group Insurance

A group insurance scheme provides a variety of advantages:

Coverage by Insurance

Workers are automatically covered under such plans simply because they are employees. For people who cannot afford an individual insurance policy, this provides essential insurance protection.

Premiums are Low

In comparison to other types of insurance group insurance has a reduced premium. As a result, paying the premium is convenient for the employees and works in their favour. However, the premium is determined by various criteria, including the average age group, professional risks, and so on.

Tax Benefits

Employers and workers both profit from group term life insurance. According to Section 10(10D) of the Income Tax Act of 1961, death benefits are tax-free under existing tax rules. Furthermore, group insurance programs are successful in both employee welfare and retention. However, these tax laws are subject to change.

Adaptable to the Demands of Employees

One can include add-ons such as schooling allowance, accidental death, and more to group insurance policies to cover a wide range of benefits in addition to the standard cover.

Options for Riders

Employees can take advantage of extra coverages such as double accident compensation, loss of future wages, severe sickness, and more for a minimal supplemental cost in the form of riders. Most insurance companies provide all of these services. Such benefits are comparable to those offered by private insurance policies and are provided to employees. Riders are not mandatory.

Payment Convenience

When it comes to a group insurance scheme for employees, paying for the insurance is simple. The premium gets automatically withdrawn from the employee's income; thus, there is no delay in payment.

Employee Benefits

A group insurance policy is more than simply coverage for the insured. It also serves as an employee welfare plan, ensuring the covered and their dependents a secure future. It also serves as a company-wide staff retention strategy.

Why Choose a Group Insurance Policies?

In case of an unanticipated event, group insurance policies protect your employee's family by providing an amount to satisfy your outstanding debt. It's a simple and affordable method to provide financial security to your current services. They also allow you to budget for employee perks and guarantee that your staff receive proper gratuities and leave encashment.


Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.