Introduction
If you are the owner of a large enterprise or company, buying group term life insurance online saves you from several financial hurdles. If any employee in your company passes away, the policy pays the sum assured to the bereaved family of the employee. By purchasing such a policy, you will also win the loyalty of your employees and their families. They know that their families will not be in a lurch after their passing away and that they will be financially protected. Buying such a policy is an excellent defensive game plan. In one stroke, you create a safety net for your employee’s families, prevent financial losses, and reduce employee attrition.
Benefits of buying group term life insurance online
- Informed decisions: All information about such plans is available digitally in the public domain. Details about the plan’s coverage, claim processing, Inclusions, exclusions, number and amount of premium payments, Sum assured, the Pay-out information, etc. With companies like Plum Insurance, it is a very transparent process. All information is at your fingertips digitally.
- Live chat assistance: In case you need an explanation regarding any terms or policy conditions, there is live chat assistance that can help you understand better. There is also 24 X7 phone support to clarify your understanding of the terms. This will prevent the requirement of a live agent.
- Seamless and smooth decisions: You can easily fill up all the details, complete the paperwork, and provide a policy for your employees. All this happens over the internet without any delays. If you have a computer and a phone, you are set. The insurance policy and renewal notice all arrive over email.
- Secure online payments: Companies like Plum insurance have encrypted portals, meaning that all your premium payments can be made online securely and safely. There are no cumbersome visits to the offices of the insurance company.
- Smooth and expeditious claims processing: Claims are automatically processed, and claim payments are smoothly made to the bereaved family. Your Human resources staff can coordinate with the insurance company’s office to ensure smooth and fast payments.
- Cost-effective solution: Insurance agents selling commissions are stripped from the product, so you get a vanilla term insurance policy without the added fees, commissions and costs.
Coverage and benefits
Eligibility
- Group term life insurance policies cover employees of an organisation in the event of death.
- Based on the insurability, it is provided to all group members or a company.
- No preceding medical examination is required.
- Extra coverage is provided for certain employees, depending on their grade.
- You can add new members anytime.
- A minimum of 50 members is required though some plans accommodate lower minimums.
- When the employee quits the organisation, the group cover ceases to exist for him.
Benefits to the employer
- The employer’s liability towards the employees’ gratuity payments reduces as the pay-outs from the group Term-Life Insurance policy can be adjusted towards the same.
- As the risks are spread over a group, the costs of administering the policy are reduced.
- The whole corpus is invested in a portfolio of financial investments. If the portfolio earns superior returns, this decreases the employer’s financial burden even further.
- Some plans combine life insurance benefits along with gratuity benefits.
- It can be customised to the organisation’s particular needs and its employees.
- It ensures employee loyalty and reduces employee attrition.
Benefits to the employee’s families
- It provides financial protection and a safety net for the employees’ families in the unfortunate event of their death.
- Their families enjoy tax exemptions under the Indian Income Tax section 10 (10D)
- Easy claims processing helps in reducing the burdens on the employees’ families.
- Add-ons like critical illness cover, total or partial disability cover, etc., can be included.
- Cheaper than buying individual term life cover.
- The employee can also undergo free medical check-ups free of cost.
How does it work?
- There is a master administrator, usually the employer who pays the first premium.
- This initial premium covers all members of the group for one year. A group member can choose the sum assured.
- The premium payment can be a one-time payment or payment associated with the salary account.
- The coverage begins after the payment of the initial premium.
- The plans have to be renewed every year, and premiums will vary according to the employee groups’ size and age.
Key Takeaways
In today’s competitive world, if you want to retain your key employees and make them feel wanted and protected, buying group term life insurance is unavoidable. You can protect your organisation from potential future financial liabilities and also secure the economic future of employees and their families. Policies from Plum Insurance offer long-term savings, which will give huge benefits later. We have all faced the Covid-19 pandemic, causing many deaths and creating untold misery. Such policies help you to motivate your employees to perform better as they can work, secure in the knowledge of the financial safety net provided by your company to their near and dear ones.
Plum Insurance is at your service with hassle-free digital claims processing, 24X7 support, and providing all-around insurance needs.