Buy Group Term Life Insurance Online

Buy Group Term Life Insurance Online
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Benefits of Group Term Life Insurance

What is Group Term Life Insurance?

Benefits of Group Term Life Insurance Policy to the Employers 

Below are the Group Term Life Insurance benefits that make it the perfect plan for the employer: 

Employee Retention

Group Term Life Insurance covers all members of a defined group which ensures that employees and their beneficiaries are provided with financial security. It offers a valuable safety net, assuring employees that their loved ones will be taken care of in the event of their untimely demise. 

This is an excellent perk to add to employees’ sentiments and make them feel valued. Hence, adding to the retention effort.   

High Morale Among Employees

Insurance coverage provided by Group Term Life Insurance policies offers financial security to employees' families. With this assurance that their loved ones are protected, employees experience reduced stress levels, leading to higher morale and enhanced productivity in the workplace. 

Affordable

Group Term plans are typically more cost-effective than individual life insurance plans for each employee. This affordability allows employers to provide comprehensive life insurance coverage to their employees without placing a significant financial burden on either party.

Tax Benefits 

Employers can enjoy tax benefits on the premium paid towards Group Term Insurance under Section 37 (1) of the Income Tax Act. The premium amount paid by the employer is considered a business expense and can be claimed as a deduction, reducing the overall tax liability for the company. 

Gratuity Saving

Some Group Term Life Insurance policies include a feature that helps employers fund their future gratuity liability for employees. Gratuity is a statutory benefit that employers are required to provide to employees upon retirement, resignation, or termination. By utilizing the Group Term Life Insurance plan, employers can set aside funds to fulfill this future liability, ensuring financial security for employees even after they leave the company.

Benefits of Group Term Life Insurance Policy to the Employees 

Below are the Group Term Life Insurance benefits that make it the most sought-after employment benefit for the employee:

Insurance Cover

Group Term Life Insurance provides a blanket coverage for all members of the defined group. This inclusivity ensures that all employees, regardless of their existing insurance coverage, receive financial security for their beneficiaries. 

In the event of an employee's demise, the insurance payout acts as a safety net, providing financial support and stability to the employee's family or dependents during a challenging time.

No Medical Check-Ups

Unlike individual life insurance policies, group insurance policies do not require employees to undergo medical check-ups for enrollment. By removing this requirement, group term life insurance simplifies the insurance enrollment process, making it more accessible and convenient for employees.  

Tax Exemption

Group Term Life Insurance offers a significant tax advantage for employees. The death benefit received by the beneficiaries upon the insured employee's demise is exempt from tax under section 10 (10) D of the Income Tax Act, as per the prevailing tax laws.  

Customisable to Suit the Employees

Group Term Life Insurance policies often offer the flexibility to customize coverage through the addition of add-on covers and riders. These supplementary features allow employees to tailor the insurance policy to their specific needs and preferences.  

What's Great About Group Term Life Insurance by Digit Life?

Key Benefits of Group Term Life Insurance by Digit Life

Coverage for Spouse

Available as an Add-On

Premium Payment Options

Single Pay, Regular, One Year Renewable

Inbuilt Critical Illness Benefit

Yes, Optional

Inbuilt Accidental Death Benefit

Yes, Optional

Inbuilt Accidental Total and Permanent Disability Benefit

Yes, Optional

Inbuilt Terminal Illness Benefit

Yes, Optional

Death Benefit Payout Options

Lump Sum or Regular Income Based on Various Factors

Voluntary Insurance Coverage

Available as an Add-On for Credit Card Outstanding, Funeral Expenses, Child Education

Renewal Rate Guarantee

Available as an Add-On

FAQs About Benefits of Group Term Life Insurance

I Already Have an Individual Term Plan. Am I Still Eligible for the Employer Group Term Insurance? up-arrow

Even if you have an existing term plan, you are eligible for your employer’s group term insurance.

I Already Have a Group Term Plan From My Employer. Should I Purchase Another Individual Term Plan? up-arrow

A group term plan does provide financial security to your family in case of your untimely demise. However, that coverage may not be sufficient. Furthermore, this coverage ceases if you change jobs, are laid off or leave the employer for any reason.

Hence, assess your needs and based on them, you may buy another individual term plan if required.

What is the Maximum Age of Entry for the Group Term Plan? up-arrow

As of now, individuals up to 69 years of age can avail of the group term insurance provided by their employer.

Does Group Term Life Insurance Have a Cash Value? up-arrow

Group Term Insurance is the basic kind of term insurance with no savings component, implying its premium is much lower than life insurance plans with a savings component.

What is the Tenure of a Group Term Insurance Plan? up-arrow

Like other term insurance plans, the tenure of group term insurance plans is 1 year and needs to be renewed annually.

Are Riders Available Under Group Term Insurance Plans? up-arrow

Yes, you can add riders to your group term insurance policy by paying extra premium.

Do I Need a Medical Checkup to Enroll in Group Term Insurance? up-arrow

No, for Group Term Insurance, a medical checkup of the group member is not required for most cases.