Group Term Life Insurance
A type of insurance coverage offered to a group of people. This coverage will provide a monetary benefit to the beneficiaries if the covered individual dies during the defined covered period.
As with other types of group benefits, group term life insurance is generally cheaper than comparable individual policy coverage. For this reason, group term life insurance is often a key component in employee benefit packages.
The premiums are based on the company's deaths experience, proposed sum assured, range of employees' ages and the occupation of the employees.
Salient Features of the Policy:
- One master policy issued covering all members of the group
- One year renewable plan
- Sum assured is payable on death (either due to natural causes or accidents)
- Addition and deletion of group members on pro-rata basis
- No health tests required for group members upto a defined sum assured limit which is called ‘Free Cover Limit’. Health tests applicable to members who have sum assured above the Free Cover Limit.
