There are many different types of life insurance policies out there. While some like term insurance are designed to offer pure protection, others like endowment plans also give you the option to create wealth. Although most life insurance policies are designed for and directed towards an individual, there’s one that’s not - group life insurance. Want to know more? Continue reading to find out all about group life insurance. That said, before we actually get to it, let’s first quickly take a look at the concept of life insurance.
What is life insurance?
Life Insurance is nothing but a contract that an individual enters into with an insurance provider. Here, the individual agrees to pay a certain sum of money regularly to the insurer in the form of premiums. In return for the premiums, the insurer agrees to provide a life cover to the said individual for a specific period of time, known as the policy tenure.
Now, if the individual dies during the policy tenure, the insurer is obligated to pay the nominee of the deceased individual a predetermined sum of money. This sum is known as the death benefit and can be completely customized by the individual at the time of purchase according to their needs and requirements.