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What Are The Benefits of Buying Group Life Insurance?

Published On Dec 28, 2021 3:00 PM By InsuranceDekho

A group of people can profit from group life insurance. Individual policies cost less than group policies.A single master life insurance policy will cover a group of people. Employers are required to provide insurance to their employees and hence frequently give group insurance coverage. Employees' sense of loyalty grows as a result of insurance coverage, which leads to increased production.

The productivity of employees is crucial to an organization's success. When a company has a team of enthusiastic and productive employees, it may be quite beneficial to the company. The corporation may establish a secure atmosphere for their employees and increase overall productivity by including a group life insurance plan as part of an employee benefits package. Furthermore, as an important component of an employee benefits package, a group insurance plan protects the finances of both employees and employers at the most inexpensive prices.

The Advantages of Group Life Insurance

Any group of people, regardless of age, occupation, or social background, can be issued a group life insurance coverage. There are different forms of group insurance policies in addition to the policies issued by companies.

  • Employees frequently earn gratuity benefits from their employers after completing a specified number of years of service with the company. The employer can build funds to offer a gratuity benefit to employees by purchasing a Group Life Insurance Policy.
  • Group Savings Plans (GSPs) are a type of savings account that can be utilised to build wealth over time. They also provide seamless delivery of life insurance payouts.
  • Credit protection - To safeguard their interests, banks and lending institutions frequently choose Group Credit Protection Plans. This insurance plan protects banks from loss if a borrower fails to repay a loan because of death or disability.
  • A group insurance plan is automatically enrolled by members. You will be registered in the group insurance plan that the company has subscribed to as soon as you join the company. The insurance coverage can be obtained with the payment of the new member's premium.
  • During the retirement time, the employee will receive the sum accumulated through the Group Superannuation mechanism.Term policy - If a group life insurance plan member passes away, the sum assured is paid to the member's nominee.
  • You will continue to have group insurance coverage as long as you are a member of the organisation. You can also get supplemental coverage based on your need. To ensure that you have complete coverage, you should review the terms and conditions of the group policy given by your company and, if necessary, purchase an individual policy. When you purchase an individual plan, your coverage remains in place even if you leave the company.
  • Payment of premiums is simple - A group life insurance policy's premiums are simple to pay. Your premium will be taken from your salary account, so you will never forget to pay it. As a result, both the company and the employees find the payment method to be quite convenient.
  • The funds accumulated by a group insurance plan are managed by the insurance provider's competent fund managers. The employer will be given enough money to deal with any emergencies. With the available financial flow, superannuation, gratuities, and other payouts can be readily managed.


Group life insurance policies have become the preferred form of life insurance cover for employees and employers alike in today's world. Term life insurance, annuity benefits, health insurance protection, and liability protection are all available under a group life insurance plan. The following are some of the benefits of owning a group life insurance policy.

Also read: 

The Need Of Life Insurance After Marriage

How To Fetch A Good Life Insurance Policy For Myself?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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