Know the Advantages of Group Life Assurance?

If you are looking to secure your family, insurance is the key thing to consider. A sufficient and assured sum of money can help your family, in case something happens to you. However, insurance comes in many forms. You can also get a group life assurance as an employee of an organization. You need to enquire whether your organization offers such insurance for its employees or not. These policies come with a host of benefits for employees as well as employers. Lets us discuss them.

Benefits For Employees

1. Low-Cost Cover

Group life insurance plans offer affordable insurance for each employee or member of a group. In comparison to personal life insurance plans, a group life assurance policy is cost-effective and offers default cover to all members of the group.

2. No Pre-requisites

In the case of a personal life insurance policy, insurance companies consider several factors like lifestyle habits, medical history, etc. However, in the case of group insurance, insurance companies don’t ask for anything like this. They don’t ask for medical screening or lifestyle habits. 

3. Hassle-free Settlement 

Claim settlement is usually fast and hassle-free in the case of group insurance plans. Beneficiaries just need to submit the required documents to initiate a claim.

Benefits For Employers

1. Low Premiums

Group life insurance policy premiums are paid in a lump sum by employers. A per-employee calculation of premium would reveal that such a policy is cheaper than individual life insurance plans. Moreover, employers can deduct a part of the premium from employee salary. 

2. Employee Incentive

Such policies are designed to protect the lives of employees. They act as incentives for employees. Indeed, employers can reduce employee attrition by offering a group life assurance for all the employees.

3. Enhances productivity

These policies offer security and peace of mind to individuals. This keeps employees stress-free and helps them to focus on the task. This may have a multiplier effect on their productivity. 

4. Tax Benefits

Premium paid towards life insurance is tax-deductible. This can help employers lower their tax liability. 

Common Benefits In A Group Plan

Group insurance plans are beneficial for employees as well as employers. For employees, it can offer term insurance coverage whereas families of employees can get a fixed sum in case of any mishap happening with the employee. It can also offer a pension after retirement or disability. Some plans also come with clauses like reimbursement for medical expenditure, liability protection, etc. 

Summing Up

If you are thinking about a pension plan to secure your family, make sure that your employer does not have one. An employer-sponsored group life assurance is the best thing to have. It comes at a low cost for both employees and employers. In some cases, employers may pay the premium in full and do not deduct any amount from the employee’s salary. They are worthwhile to consider for employers too. These plans act as incentives for employees since they feel more secure about their families in case of any mishap happening with them. You just need to make sure that you are aware of all the provisions of the policy.