Group life insurance is typically
offered as a piece of a larger employer or membership benefit package. By purchasing
coverage through a provider on a “wholesale” basis for its members, the
coverage costs each individual worker/member much less than if they had to
purchase an individual policy. Those receiving coverage may not have to pay
anything “out of pocket” for policy benefits or they may elect to have their
portion of the premium payment deducted from their pay check.
Group Term Insurance Plan will generally
have the following structure:
- Provides life cover to groups of people
- One master policy covering all members
of the group
- Annually renewable term insurance plan
- Addition and deletion of members anytime
during the year
- Sum assured payable to nominee on death
of the covered member
- Employees can be additionally covered by
riders e.g. accidental/ critical illness / disability
- Offers flexibility to cover the spouse
of the member
- Simplified –Enrolment process
- Easy claim settlement process enabling
speedy & quick settlement.
- Get additional protection by opting for
Group Critical Illness Plus Rider that provides Rider Sum Assured in case
diagnosed with any of the 19 Critical Illnesses
Advantages
of the GTLI Plan
- Your Employees can enjoy a Life Cover at a low cost
- A Life Cover is a strong retention tool and loyalty building
measure for employers
- You can avail tax deductions on the premium paid, as per
prevailing tax laws
- The administration process for addition and deletion of members is
simple
- Coverage without the need for a medical examination for Life Cover
up to the free cover limit*
- Coverage to your employees in case of an unfortunate event
- *Free cover limit is the maximum amount of Life Cover that can be
offered without any medical tests. This limit varies from group to group.
Benefits
To employer
- Life cover for all the group members under one policy.
- Easy and hassle free financial help to the employee's family, in
case of an unfortunate event
- Cost-effective method to buy a high cover at a low premium
- GTI cover for future service gratuity liability
- Serves as strong retention tool
- Premiums paid by the employer is tax deductible u/s 37 (1) of the
Income Tax Act, 1961
- Simple procedures for addition and deletion of members in to the
policy
Benefits
To employee
- Adequate financial support to loved ones against his accident,
illness or untimely death
- Convenience of no medical tests till free cover limits
- Cover for housing or vehicle loans given by you to your employees
- Premiums paid by the employer not treated as perquisite
- Death benefits exempt from tax under Section 10(10D)
FAQ'S
How does GTLI plan work?
This plan is offered through a Master Policy that is issued to
Employer. As the Master Policyholder or the group administrator, you pay
premiums that cover the members of your group. The members of your group are
covered for a period of one year.
How will the Employee’s nominee receive the lump sum amount?
As the
Master Policyholder, you can choose the lump sum amount that will be provided
to the Employee’s nominee*. It can either be a flat or graded cover amount.
When all members of the group have the same Life Cover, it is called the
flat cover. On the other hand, when different individuals are offered different
Life Cover on the basis of pre-decided grades, it is known as a graded cover.
*Nominee is the person who will receive the Life Cover amount in
the absence of the member.
What is the minimum number of members needed under this plan?
Formal group should consist of minimum 10 members. An Informal group should
have at least 50 members.
How much premium can I pay at policy level?
You have to pay a minimum premium of `10, 000 p.a. at the policy level*.
What is the minimum amount of Life Cover offered?
The minimum amount of Life Cover is Rs.5,000 for each member.
At what age can a member start this plan?
The minimum age of entry for a member should be 15 years. But, the maximum age
of entry should not exceed 79 years.
How long does the policy last?
The policy lasts for 1 year. It can be renewed thereafter.
How frequently can I pay the premiums?
You can pay the premiums monthly, quarterly, half-yearly and yearly.
More Terms & Conditions
SERVICE
TAX: Service tax, if any, shall be as per the Service Tax laws and the
rate
of service tax as applicable from time to time.
GRACE
PERIOD FOR PREMIUM PAYMENT:
A grace period of 30 days from due date of
premium will be allowed for payment
of premiums
REVIVAL OF POLICY:
If the policy has lapsed, it may be revived
within a period of 30 day - 3months from the
date of first premium or the next Annual
Renewal Date whichever is
earlier,
WAITING PERIOD:
For
employer-employee groups there will be no waiting period. However,
for non
employer-employee groups waiting period will
be 45 days from the date of
commencement. During this waiting period, no
death benefit shall be payable.
SUICIDE CLAUSE:
In case of death of a member due to suicide,
within 12 months from the date of
inception of the policy or date of entry of
the member into the scheme
whichever is later, claim payable shall be 80%
of the premium paid in respect of
that member, provided the policy is in force.
However,
in case of employer-employee groups where the participation is compulsory, this
clause shall not be applicable.
COOLING-OFF PERIOD:
If policyholder is not satisfied with the
“Terms and Conditions” of the policy, he/
she may return the policy to the Corporation
within 15 days from the date of
receipt of the policy stating the reasons of
objection.
On receipt of the same the Company shall
cancel the policy and return the amount of premium deposited after deduction in
respect of the following:
a. Recovery of proportionate charges towards
risk premium.
b. The stamp duty.
