As per the reports by Society for Human Resource Management, about 80% of companies offer company-paid group life insurance as a benefit. Group Term Life insurance is a type of term insurance which covers a group of people under a single master life insurance policy. It provides financial security to the beneficiaries of the group for medical emergencies during the coverage period. Companies form the most common type of group that avail this type of policy for their employees. The employer is responsible for selecting the sum assured and the premium that is to be paid, accordingly. Since Group Term Insurance is affordable and costs less than individual policies, it is beneficial to both the employees and the employer.
What are the Features of Group Term Insurance?
Apart from being affordable and cost effective, Group Term Insurance comes with many other features like -
Many employers offer basic Group Term Insurance at no cost to employees as part of their benefits package.
Since the plan is sponsored by the employer, there is little to no financial burden on the employee depending on the policy of the organization.
All eligible employees are automatically covered under Group Term Insurance
Group Term Insurance can be combined with individual plans in cases where the coverage amount offered is enough.
Some insurers also offer the option to continue the coverage by converting the group term to an individual permanent policy.
To learn more about Group Term Life Insurance or your other corporate insurance and employee wellness needs, contact HealthySure team.