Group Insurance Policy - Types, Features, and Benefits
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.
Group Insurance offers life cover, health cover, accident cover, and several other types of covers.
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
Coverage ends when you leave the employment
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
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.
Eligibility Criteria For Group Insurance Policy
Why Do Companies Buy Group Health Insurance?
Most companies opt for going for group insurance instead of buying individual insurance plans for their employees. Let’s take a look at the reasons for it.
Buying a group insurance plan is a lot cheaper than individually insuring every team member. Companies end up saving a considerable cost by going for group insurance policies for their members.
Since most plans are customizable, adding or removing an employee won't be an issue. As these times see people frequently changing jobs, the insurance plans provide a feature to add as many new employees as they can.
Companies buying group insurance policies have tax exemptions while filing their annual income taxes.
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.