Will I receive the maturity benefit with the Group Term Insurance Plan if I outlive the policy term?

Group-term insurance plans are pure protection plans which only provide benefits if the member passes away prematurely or if the covered contingency occurs. For instance, if an insured member passes away or in the case of a superannuation group plan, if the insured member retires, the death benefit or retirement benefit would be payable. However, if any or all of the members outlive the policy term, no maturity benefit would be paid and the policy can be renewed, with the addition or removal of members for the next policy term1

Will personal habits of members such as smoking etc. influence the premium of group term insurance policy?

Group term insurance policy follows the whole group and its premium is based on the group risk and not individuals as it is a single contract covering multiple individuals. It will not be influenced by member’s habits1.

Which one is better, Individual Term insurance Or Group Term insurance?

The choice between Individual Term insurance Or Group Term insurance depends on individual financial requirements and goals. For individuals looking for cost-effective life insurance for a specified tenure to cover their family or any mortgage/ dues, then group term insurance is suitable for them. On the other hand, for individuals looking for enhanced coverage, more flexibility, and personalized coverage, individual-term insurance is suitable1.

What are the tax benefits of a group term insurance policy?

The group-term insurance plan offers tax benefits to employees if they pay the premium. The premiums paid under the group insurance plan are eligible as a deduction under Section 80C of the Income Tax Act, 1961. Further, the death benefit received by the nominees of the employees under group term insurance policy is exempted from tax under Section 10(10D) of the Income Tax Act, 1961.

Can a society or employee welfare associations buy a group term insurance policy?

A society or employee welfare associations are considered a non-employee-employer group. Some group insurance policies are available for both employer-employee and non-employer-employee groups. A society or employee welfare associations can buy only those group insurance policies which are extended to non-employee-employer groups1.

Which type of insurance offers a longer coverage period: Individual Term or Group Term Insurance?

Group term insurance plans are usually issued for one year and can be renewed when the term expires. The coverage of the policy continues till the employee is a part of the group and ceases when the employee exits the group or changes jobs. Individual term insurance, on the other hand, provides longer coverage, which may extend to the whole life of the employee based on the term plan and is not affected if the employee changes their job or group.

Is there any waiting period in group term insurance plans?

Group-term insurance plans usually do not have any waiting period. However, one should carefully review the policy document to understand the specific details related to waiting periods.

Is Group Term Life Insurance a permanent policy?

No, a group term life insurance is not a permanent policy. It is a renewal plan which has been to be renewed after the coverage duration is over.

How to convert Group Term Life Insurance to an individual policy?

When a member leaves the group, the insurance company offers the member the chance to convert the group coverage into an individual plan. The member can exercise this option and request the insurer for the conversion. Once converted, the member pays the premium and enjoys individual coverage.

Group Life Insurance

There are different types of life insurance plans. Broadly, such plans can be divided into two heads – individual insurance plans and group insurance plans.

Individual insurance plans are those designed for individual coverage needs. They usually cover one individual and pay the benefit on the individual’s premature demise or maturity (if applicable).

On the other hand, group life insurance plans are those which cover a group of individuals under a single policy. The plans are issued to homogenous groups, i.e., groups formed for a common purpose which is not seeking insurance coverage. Common examples include employer-employee groups, lender-borrower groups, etc.

Let’s understand the concept of group life insurance in detail.

How does a group life insurance plan work?

Under a group life insurance policy, a group decides to cover its members under the insurance plan. The group makes a proposal to the insurance company for the same.

Depending on the nature of the group, the number of members to be insured and other factors, the sum assured and the premium are determined. The policy runs for a specific tenure, usually one year, after which it can be renewed.

During the coverage tenure, if the insured member passes away, the policy pays the relevant sum assured to the nominee or the legal heir of the deceased member. Coverage for other members continues till the chosen tenure.

On maturity, usually, no benefit is paid under group-term life insurance plans. The group can renew the coverage for another year wherein, the number of members exiting and entering the group is updated and the updated premium is calculated.

Functions of group insurance policy

Some of the functions of a group insurance policy are as follows –

Provides financial security to the group’s members with the coverage offered.
Helps employers take care of their statutory financial requirements. For instance, gratuity payments are a statutory requirement for eligible employers. A group gratuity plan helps employers meet this statutory need in a systematic manner.
The group insurance policy fosters trust, loyalty and cohesiveness between the group and its members.

Benefits of group life insurance

Some of the benefits of a group life insurance policy is as follows –

For employees:

1. Easily available:

Individuals who might not get life insurance coverage otherwise due to their age or health conditions can enjoy group coverage if they are part of the group that has bought the policy.

2. Cost-effective:

The premium for a group life insurance plan is lower compared to the premium payable for an individual plan. Moreover, if the group pays the premium on behalf of its members, members can enjoy free coverage.

3. Comprehensive coverage:

The sum assured offered under group life insurance policies can help the member’s family meet their financial needs if the member passes away. Moreover, optional coverage benefits are also usually available which, if chosen, can enhance the scope of protection.

4. Financial security:

A group life insurance plan can provide financial security to insured members since their premature demise would result in a financial claim payable to their families.

5. Tax benefits:

The death benefit received from the group life insurance policy is tax-free in the hands of the member’s family.

For employers:

1. Helps groups retain and motivate members:

When a group buys coverage for its members, the members might feel that the group cares about their financial security. This can bolster trust and loyalty among members making them stay in the group.

2. Works as an employee benefit program and helps boost loyalty:

This is especially productive in the case of employer-employee groups wherein a group cover can be a part of employee wellness programs and assure loyalty among employees.

Features of group term life insurance plans

Some of the salient features of group life insurance plans are as follows –

A minimum number of members is required to buy the policy.
The premium of the policy is paid in one lump sum. The group can pay the premium on behalf of all members or the members can contribute their share individually. Alternatively, the premium can be shared between the group and the individual members in a specified ratio.

Documents required to buy group insurance plans?

Certificate of incorporation
Memorandum and Articles of Association
A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees, as the case may be, to transact on its behalf
Permanent Account Number and copy of the company
Permanent Account Numbers or Form No.60 of the managers, officers or employees, as the case may be, holding an attorney to transact on the company’s behalf
One copy of an officially valid document containing details of identity and address of the managers, officers or employees, as the case may be, holding an attorney to transact on the company’s behalf
One recent photograph of the managers, officers or employees, as the case may be, holding an attorney to transact on the company’s behalf
Master Proposal Form
Scheme Rules
Signed Offer letter
Member data
GSTN Certificate

What are the group insurance plans offered by Bajaj Life Allianz?

Here is the list of the group insurance plans offered by Bajaj Life Allianz along with their salient features²:

Plan Name	Salient Features
Bajaj Allianz Life Group Secure Return-A Non-Linked, Non-Participating, Group Savings Plan	Group Secure Return plan helps the employers manage their employee benefits schemes. It offers a guaranteed interest rate at the time of contribution for the specified tenure selected by the policyholder.
Bajaj Allianz Life Pradhan Mantri Jeevan Jyoti Bima Yojana-A Traditional Group Term Insurance Plan	Pradhan Mantri Jeevan Jyoti Bima Yojana is a one-year group term insurance plan under which a scheme can be set up only for Banks. The plan is introduced under the 'Pradhan Mantri Jeevan Jyoti Bima Yojana' (PMJJBY) scheme of the Government of India It is a renewable term plan of which the initial cover period will be from 1st June to 31st May next calendar year. Thereafter, the life insurance coverage can again be renewed on the 1st of June every calendar year.
Bajaj Allianz Life Group Superannuation Secure-A Traditional Group Savings Insurance Plan	Group Superannuation Secure is a pension plan for employers to manage pension funds for their employees The plan offers two options which include Pooled-level and Member-level (individual account). The plans help employers create a retirement corpus to ensure a smooth flow of funds to employees after retirement.
Bajaj Allianz Life Group Sampoorna Suraksha Kavach-A Traditional Micro Group Life Insurance Plan	Sampoorna Suraksha Kavach's plan covers the liability of outstanding loans of the members of the group. It covers several types of micro loans given by Financial Institutions, Small Finance Banks, Micro Finance Institutions etc., to their customers. The plan offers a joint coverage option for the spouse of the member There are four variant options available under the plan to choose from based on individual requirements.
Bajaj Allianz Life Group Credit Protection Plus-A Non-linked Non-Participating Group Life Insurance Plan	Credit Protection Plus covers several types of loans provided by employers to their employees and also covers borrowers as well as co-borrowers of several types of loans from co-operatives, financial institutions, etc. The policyholders can choose from two types of coverage which include level or reduced coverage Plan offers an option to add Accelerated CI (Critical Illness) Benefit and/or Accelerated Accidental PTD (Permanent Total Disability) Benefit rider for enhanced coverage.
Bajaj Allianz Life Group Employee Care-A Non-Linked Non-Participating Group Savings Insurance Plan	The plan aims to enable the employees to manage the retirement benefits of the employees. The employers can choose to manage the policy under any of the two options, i.e. the pooled level or individual level options.
Bajaj Allianz Life Group Term Plan-A Non-linked Non-Participating Group Term Insurance Plan	The scheme under the Bajaj Allianz Life Group Term Plan can be set by both employer-employee groups and Non-employer-employee groups. The policyholders can choose from the uniform or graded cover options. The member has the option to receive the death benefit either as a lump sum or partly as a lump sum and partly as equal instalments
Bajaj Allianz Life Group Employee Benefit-A Unit-Linked Non Participating Group Insurance Plan	Bajaj Allianz Life Group Employee Benefit is a multi–featured life, linked group insurance plan. Group Employee Benefit helps employers create a provision to meet their liabilities towards their employees on retirement The employers can choose from the 9 fund options available and set up a separate fund for gratuity, superannuation, leave encashment benefit, employee welfare funds and post-retirement medical benefits (PRMBS).
Bajaj Allianz Life Group Sampoorna Jeevan Suraksha-Non-Linked, Non-Participating, Micro Group Life Insurance Pure Risk Plan	Sampoorna Jeevan Suraksha is a non-linked, micro-group pure-risk life insurance plan. The plan protects the family of the members of the group from the liability of the outstanding loan repayment There are three in-built covers to choose from along with the base Death Benefit.
Bajaj Allianz Life Group Superannuation Secure Plus-A Non-linked Non-Participating Group Superannuation Plan	Superannuation Secure Plus is a pension group saving product offered to employers to manage pension funds for their employees The policy ensures a secured regular income flow after retirement to members of the group.

Source:

https://www.forbes.com/advisor/in/life-insurance/term-insurance/all-about-group-term-life-insurance-policy-in-india/

https://www.bajajallianzlife.com/group-insurance-plans.html

Group Insurance Plans

Group Life Insurance

Group Insurance Plans

How does a group life insurance plan work?

Functions of group insurance policy

Benefits of group life insurance

For employees:

1. Easily available:

2. Cost-effective:

3. Comprehensive coverage:

4. Financial security:

5. Tax benefits:

For employers:

1. Helps groups retain and motivate members:

2. Works as an employee benefit program and helps boost loyalty:

Features of group term life insurance plans

Documents required to buy group insurance plans?

Who is eligible for group term life insurance policies?

Employer-employee groups

Non-Employer-Employee groups: Financial institutions like Banks and NBFCs

What are the group insurance plans offered by Bajaj Life Allianz?

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Health Management Services	Frequency	Cost (₹)
Doctor Insta-Consultations	3 consultations per month = 36 consultations per year	Average cost per session = ₹500 Total cost per year = ₹500 * 36 = ₹18,000
Health Coach (Diet & nutrition consultations)	1 consultation per month = 12 consultations per year	Average cost per session = ₹500 Total cost per year = ₹500 * 12 = ₹6,000
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