Group insurance is produced for an individual by combining those who share a profession, affiliation, or any other predetermined criterion. Such a program has been created by many insurance firms to meet the needs of various specific groups, such as employers and employees, professionals in an organization, etc.
Objectives:
- – Offering investment plans to pay employees’ gratuities
Employees who have worked for an organisation for more than five years are eligible to receive gratuities. In this type of situation, the company has the opportunity to invest in or establish a corpus through the group insurance plan, which might then be used to pay the gratuity sum to the qualified employees.
- Covers term insurances, ranking two
In the case of insurance, the assured sum is paid to the surviving family members in the event of the insured’s untimely demise.
- To increase the long-term savings habit.
For those insured by this insurance, it fosters the practise of long-term saving.
- Annuity Facility
For employees’ retirement plans, it offers superannuation plans. In the plan, employees accumulate the premium over the course of their employment and are granted a pension at retirement.
The policy’s coverage for each beneficiary is fixed, and they have no influence over it.
If the beneficiary leaves the group, the insurance contract will end; in other words, if an employee leaves the company, his coverage would end.
All are treated equally under this type of group health insurance. It leads to the same risks being taken into account for every person, including for a healthy person and a very ill person. As a result, the cover will be regarded as having the identical terms and conditions.
A single policy is purchased for a group of persons who are related to one another according to the criteria outlined in the terms and conditions of the cover. With a broader coverage of terms and circumstances relating to the cover, the group policy results in lower costs for both the group head and the individual beneficiary. All recipients are evaluated equally and without any discrimination.
