Members of a group automatically receive insurance coverage by being part of the group. This ensures that even those without a personal life insurance policy have basic coverage.
Group insurance policies offer employers a systematic way to build funds for future gratuity liabilities towards employees. This provides an added advantage along with life insurance coverage, simplifying the process for employers.
Both employers and employees can enjoy tax benefits under Group Term Life Insurance plans. According to the prevailing tax laws, death benefits are exempt from tax under Section 10(10D) of the Income Tax Act, 1961. Additionally, these plans serve as effective tools for employee welfare and retention.
Group insurance policies can be tailored with add-ons like education allowance, repatriation allowance, accidental death cover, and more. This flexibility allows for a wide range of benefits beyond the basic life cover.
One of the advantages of Group Term Insurance Plans is that employees typically do not need to undergo medical check-ups to qualify for coverage.
Since a group plan covers a large number of individuals, the overall premium is generally lower compared to individual life insurance policies, making it a cost-effective option.