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

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.

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

The premium paid for the group insurance policy is much lower than paying the premium for the individual insurance policy for every member of the group.
Buying an insurance plan for your employees increases the trust in the organization, thus helping forge a long term relationship. If an organization provides insurance for all the employees, it will enable them to work stress-free. It also acts as a motivating factor.
A group insurance comes with a benefit of tax exemption. The organization can claim waiver while filing the income tax.
A group insurance is easily customizable as per the sub-groups under your organization.

Benefits to Employee

Generally, most employers these days provide a group insurance policy to all their employers without deducting from their salary. Employees can stop worrying about spending money to buy an insurance policy as long as they are part of the group. It's a boon for people in the lower-income group.
Most insurance plans extend coverage to the member's families automatically. For instance, most insurance providers provide coverage for the member's spouse and dependent children.
Group insurance plans do not require members to undergo procedures like a medical check-up. As soon as they come under the umbrella of the group, the insurance facility is provided automatically without any pre-requisite conditions.
Many Group Insurance Plans provide an option for the group member to convert their existing policy to individual policy, once they exit the group.

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.

Cost-Effective Customizable Tax Exemptions

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.