It is quite common for an employee’s cost-to-company (CTC) to include the insurance premium paid by the employer. This insurance premium could be for several group policies, including group health insurance, group term life, and group personal accident. Differentiated insurance benefits based on Group grades A large number of employees do not pay close attention […]
Articles Tagged: Group Term Life Insurance Policy
Top Life Insurance Companies in India with Claim Settlement Ratio
Life insurance is becoming an essential part of every Indian household. It doesn’t just provide financial security in the event of your departure but also helps you deal with unexpected expenses. The claim settlement ratio is an important part of purchasing a life insurance policy. A comprehensive life insurance plan coverage with a lower premium […]
All you wanted to know about Group Term Life Insurance
Group term life insurance is the term coverage offered to a group of people under a single umbrella policy. In the event something were to happen to the individual covered under this policy; then the sum assured will be paid out to the other beneficiaries. This benefit will be available for the pre-determined term offered […]
What is the significance of FCL in GTL policy?
FCL stands for Free Cover Limit in the GTL policy. It’s the limit up to which the insurer doesn’t require medical tests for a grant of coverage in the policy. The significance of FCL in a GTL policy lies in its role as the maximum amount of coverage that can be provided to an individual […]
What is the “Active at work” clause under GTL Insurance policy?
Though life insurers waive individual medical underwriting up to FCL limits. They necessitate that the GTL insurance cover, be underwritten subject to the “Active at work” clause. An employee is actively at work under GTL Insurance if he/she is: either actively performing his/her normal occupation or taking leave (other than sick leave) authorized by the […]
How does stamp duty affect first-time purchase and renewal pricing for GTL?
As per government and regulatory norms, insurers are required to pay stamp duty for GTL policy. The calculation of the stamp duty amount is as defined under – 1. Stamp duty of INR 0.20 per INR 1000 of the sum insured. 2. Stamp duty is to be paid for every new GTL policy. 3. On […]
What affects the Premium of Group Term Life Policies?
A group term life policy is purchased by an organization, to cover a minimum number (group) of employees. The very nature of the group term life policy affects the premium amount. An employer usually chooses to cover all insured members under the same risk and therefore, pays a lump-sum premium to the insurance company. It […]
Why Premium is Lower in Group Term Policy Than Individual Term Policy?
The premium for the group term policy is dependent on various factors, like the number of people insured in the group, the average sum insured per person, the average age of the group members, the occupational risk of the group, etc. Insurance premium consists of three components: Risk Premium Loading for Office Expenses Investment Component […]
Group insurance policies that offer life cover
Coverage under group life insurance policies depends on the terms and conditions under which a company buys the policy. Types of group insurance policies There are different group insurance policies that come with life insurance cover. Group term life insurance This policy offers a lump sum benefit payable to the specific ed beneficiary in case […]
How to decide coverage under the Group Life Insurance Policy?
The employer can choose different benefit calculations to determine the amount of coverage for the employees under a group life insurance policy. In general, for group insurance contracts, the employer assigns employees to different classes and schedules of benefits. These classes determine the amount of coverage that will be provided to the employee. Here are […]