Group Term Life Insurance

Group Term Life Insurance is one of the benefits that employers offer to their employees. It is a type of life insurance that provides coverage for a specific group of people. It is an affordable way to ensure financial security for employees and their families in case of the unfortunate demise of the policyholder.

For instance, suppose one of your employees dies in an accident while travelling to the office. Since your employee was covered under a group-term life insurance policy, the family of the deceased will get compensation up to the sum assured mentioned in the policy document.

To put it simply, the insurer pays a lump-sum benefit to the designated beneficiary if the insured person passes away during the policy term. It is often provided as part of employee benefits packages, resulting in the cancellation of the policy when an employee resigns from their employment services. Group term insurance plans are more affordable in comparison to other individual term life insurance policies.