Group Life Insurance is a term insurance cover provided to a group of people (at least 10 ) who must exist for some purpose other than that of taking insurance.
- Life insurance offered by an Employer or Association to its workers or members
- The cover enables the employer/scheme holder to alleviate the financial distress that might befall the dependents of an insured member upon his/her death.
- A single insurance contract covers an entire group of people
- Group Life insurance is typically offered as membership benefit package
- By arranging coverage on a group basis, the premium for each member is much less than if they had to purchase cover on individual basis
- The minimum age at entry is 18 years while the maximum age has been set at 70 years.
- Cover Benefits are usually expressed as a multiple of salary (2,3,4 times basic salary) or on fixed amounts (500,000/=, 1,000,000/= etc)
- The cover has riders : Permanent Total Disability , Critical Illness , Last Expense