Term life insurance
In term life insurance, the policy covers risks only to the decided tenure of years. The benefits are paid to the policy holder, after the completion of the term. In case of death of the insured, if the policy is still active, a death benefit is paid.
The term insurance in group life insurance is on yearly renewable basis. The employer will pay all the premiums for the insured employee. The coverage amount is generally same as the sum of the employee's annual salary or one or two times greater than it.
Group Life Insurance
Typically, a group life insurance is for an employer who is interested to take life insurance for the organization's workforce. It is one of the best term life insurance policies, which is sometimes offered as a part of employee benefit package.
The insurance buyer can choose the employees to be included in the plan. By purchasing best term life insurance policy, you as a policy-holder can enjoy many benefits.
- The cost of term life group coverage is pretty low than what the individual employees would have to spend on to buy a policy for themselves.
- You as the employer will get to keep the actual term life insurance policy, named as the master contract. The ones covered under it will receive the policy's insurance certificate.
Group Term Coverage
For an employee, the group term coverage remains until he/she is employed with the organization. Coverage terms come to an end on termination of the employment or when the policy term gets over. As an insured employee, you can convert the group term coverage to an individual policy, but there is a risk that the premiums you then pay could be higher than other comparable policies for individuals.
As an employer, you can choose to buy a group medical policy or a group mediclaim for your employees. The term medical policy is in tandem to specific IRDAI guidelines. Some of the features to the policy are: cashless transaction for medical bill payment to the hospital, all charges managed from the point the insured enters the clinic to his/her discharge.
Normal costs covered are that for nursing, boarding, fees of anesthetist, doctor, medical practitioner, specialists, consultants, and payments for blood, oxygen, anesthesia, surgical appliances, medicines, chemotherapy, dialysis, X-rays and other health necessities.