Group insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives, weaker sections of society. Group insurance plans have low premiums. Such plans are particularly beneficial to those for whom other regular policies are a costlier proposition. Group insurance plans extend cover to large segments of the population including those who cannot afford individual insurance. A number of group insurance schemes have been designed for various groups. These include employer-employee groups, associations of professionals like doctors, lawyers, chartered accountants etc.
Group insurance coverage is seen as a major perk for employees from their employers. The premium payments are usually deducted automatically from the pay itself. Some companies will absorb the entire cost of the policy as a benefit for employees. The main advantages of the group insurance schemes are low premium and simple insurability conditions. Premiums are based upon age combination of members, occupation and working conditions of the group.
A major feature of group insurance is that the premium cost on an individual basis may not be risk-based. Instead it is the same amount for all the insured persons in the group. Another distinctive feature is that under group insurance a person will normally remain covered as long as he or she continues to work for a certain employer and pays their insurance premiums. This is different from the individual insurance policy where the insurance company often has the right to reject the renewal of a person's policy, depending on his risk profile.
Group insurance coverage is seen as a major perk for employees from their employers. The premium payments are usually deducted automatically from the pay itself. Some companies will absorb the entire cost of the policy as a benefit for employees. The main advantages of the group insurance schemes are low premium and simple insurability conditions. Premiums are based upon age combination of members, occupation and working conditions of the group.
A major feature of group insurance is that the premium cost on an individual basis may not be risk-based. Instead it is the same amount for all the insured persons in the group. Another distinctive feature is that under group insurance a person will normally remain covered as long as he or she continues to work for a certain employer and pays their insurance premiums. This is different from the individual insurance policy where the insurance company often has the right to reject the renewal of a person's policy, depending on his risk profile.
Get Indian stock market tips covering NSE and BSE now. Free trial available for intraday tips, positional tips and btst/stbt tips
ReplyDelete