Insurance For Employees

An organisation’s biggest asset is its workforce. While businesses make a lot of effort to enhance their work environments and employee benefits programmes, extending a group-term life insurance policy is still a successful method of protecting such priceless assets. Group term insurance is a real safety net that can help protect the financial future of your employees’ families, not merely one of the strategies to increase productivity.

The corporation pays all or a portion of the premiums; in the latter case, the insured person is responsible for the remaining balance. The death benefit payout from such plans goes to the employee’s specified nominee in accordance with the terms and conditions of the policy if anything unforeseen occurs to the employee covered by the plan.

Features to look for in employee group insurance policies

If you’re an employer searching for a complete group term insurance plan, take into account the following features:

  1. A broad range of coverage

Because they consider the cumulative risk of the group as a whole, group insurance policies for employees often provide a basic coverage umbrella. In the event of the employee’s premature passing away, these plans’ little coverage could leave the dependents of such employees without adequate financial support. Given the unpredictability of the present, it is preferable to choose a group-term life insurance plan that provides your employees with a wide coverage berth and a sufficient death benefit payout. You can use a term insurance calculator to get familiar with your average costs.This will give your workers peace of mind knowing that their family’s needs will be fulfilled after their passing.

  • Riders with disabilities and illness

While term insurance acts as a safety net to protect the policyholder’s family in the event of their passing, today’s world is also full of other uncertainties. Thus, in order to provide such benefits to your employees, as an employer, you must look for plans that provide inexpensive add-on riders.

For instance, the employee in issue may find it difficult to support the family if a serious sickness, such as cancer or kidney failure, is discovered. In these situations, a critical illness insurance policy can provide an additional source of income to help people pay their bills. Verify the diseases that are covered by the rider. Similar to how it can be helpful if someone gets injured in an accident and becomes disabled. *All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply.

  • Customising death benefit payout

No two employees will have exactly the same insurance needs. Therefore, it stands to reason that their preferred methods of receiving death benefits will also differ. For instance, the loss of the family’s sole revenue source could occur if the employee is the only earning member with dependent children who are minors. In such a case, the person can choose regular monthly payments over a one-time lump sum payment in order to cover the dependent’s ongoing needs. Therefore, as an employer, you should choose a group term policy that has the option to customise the death benefit payout.

Employees have the option of having the sum assured paid to the nominee as a lump sum payment or of having only a portion of this payout made as a lump sum payment, with the remaining half being paid to dependents in monthly instalments over a certain number of years. A term insurance calculator can assist you in making the necessary calculations so that you are well-prepared.

  • Joint life cover

Your employees might desire to extend the group insurance coverage to their spouses, given the unstable times we live in. Additionally, since many people may not be able to afford to purchase individual term insurance policies, they might prefer to add their wives (at a minimal cost) to the group term plan you are offering.

You must therefore search for policies that permit joint life cover advantages as an employer. Members (workers) of such plans may add their spouses to the insurance. The insurance will disburse the death benefit if any of them passes away.

  • Quick claim settlement process

The last thing anyone wants for their dependents to go through is a difficult claim settlement process, especially when they are already struggling with a loss. Therefore, you must make sure that the group term insurance you choose for your employees has an expedited claim resolution procedure.

Choose one that has a digitally automated claim settlement process. Your employee will gain from this feature because it will ensure that their family won’t have to jump through hoops to collect the policy’s death benefit.

To sum it up

By choosing a group term insurance, you provide your employees peace of mind knowing that in the event of an early demise, their families won’t be left without financial support.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

By Lata

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