Group insurance policy
Group insurance is an insurance policy that provides coverage to a group of people, typically employees of a company or members of an organization. It offers a range of benefits such as health, dental, vision, life insurance, and disability coverage, at a lower cost than individual insurance policies.
What is Group Insurance?
Group Insurance is a type of insurance coverage for a defined group of people under one single policy. For example, employees of an office, members belonging to a specific organization or a society. Instead of buying insurance for every single individual in an organization, group insurance provides coverage to all the members. Generally, employers offer group insurance to their employees as an additional benefit apart from the statutory allowances.
Features of Group Insurance
Most insurance companies have extensive group insurance plans to meet the insurance requirements of offices and organizations. Group insurance plans have distinct features that set them apart from the rest of other insurance plans. Below are some of the features of group insurance.
- Coverage to every member: No matter the number of people, a group insurance covers every member of the group under one single policy.
- Standard Coverage: The benefits of this insurance policy remain the same for all the insured members in the group irrespective of their position in the organization.
- No Limitation:There’s no size limitation while going for group insurance. Whether the group has 500 members or a mere ten members, everyone can receive insurance coverage.
- Coverage ends when you leave the employment: Group insurance is active as long as you are a member of the group, which bought the insurance policy for you. When you end your association with your company by resigning or retirement, your insurance coverage automatically stops.
Types of Group Insurance Plan
Most insurance companies offering group insurance plan under these four categories:
Group Life Insurance
Group Life insurance is a type of insurance which provides a death benefit to the nominee of the insured member of the group. In the event of the death of the insured member, his/her nominee will be eligible to get the compensation. However, if the insured member survives the coverage period, no maturity benefit shall be provided.
Group Medical Insurance
Group Medical Insurance is a type of insurance which provides medical coverage to all the insured members. It covers hospitalization charges, ambulance charges, and other daycare benefits to the insured members and their families.
Group Personal Accident Insurance
This insurance policy provides compensation to the nominees if the insured member dies or suffers any permanent/partial disability due to an accident.
Group Travel Insurance
Group travel insurance is provided to people who frequently travel as part of their jobs. It covers emergency hospitalization, passport loss, baggage loss, and other emergencies that may occur while travelling.
Benefits of Group Insurance
Every plan has its own set of benefits. A group insurance policy not only benefits the member of the group but also the organization. Here are the benefits of buying group insurance from an employer/organization point of view.
Benefits to Organization
Benefits to Employee
Eligibility Criteria For Group Insurance Policy
- All members should be a full-time member of the group.
- The minimum age entry to enlist in a group insurance policy is 18.
- Maximum age limit depends on the insurance provider. Generally, the insurance companies provide cover for members up to 60 years of age.
How to buy group insurance policy at Fincover?
Buying a group insurance policy at Fincover is a hassle-free process. Just follow the below steps to get a group insurance coverage for your employees.