Isn’t it incredibly stress-relieving to get life insurance coverage via your place of employment? Several firms provide their employees with group term life insurance contracts at little or no cost. Instead of having their own personal life insurance, many employees nowadays are really content with such corporate insurance plans.

So, is selecting a group term life plan a wise decision? We at Raghnall insurance agency are here to help you learn more about group term life insurance, its key features, what benefits it offers, and whether or not you ought to have one.

What Is Group Term Life Insurance?

When numerous persons or a group of people are covered by a single life insurance policy, the phrase ‘group term life insurance’ is used. In the event that the insured person passes away during the policy term, the group term plans are designed to provide financial security to the nominee or beneficiary. Group term life insurance is more affordable than individual term insurance. It should be mentioned that group-term insurance remains in effect for as long as one's job is continued or until the policy's term expires. If the insured decides to quit their current company at this point, they have the option to change their group coverage to individual insurance. 

The most typical example of group term life insurance is when a business offers term insurance to all of its workers as part of a single plan or agreement. The employer receives the contract and then provides coverage to the employees. These plans also feature a master policyholder, in this instance the employer, who serves as a central administrator on behalf of the group's members.

What Are the Key Features of Group Term Life Insurance?

1. Covers numerous employees under the same policy.

2. Either the full premium is paid, or the employer covers a significant portion.

3. Covers numerous employees under the same policy.

4. Either the full premium is paid, or the employer covers a significant portion.

5. All employees receive free life insurance, however, the actual coverage is constrained and based on variables including risk class and group size.

6. When a covered person passes away, the nominee receives the sum promised.

7. The individual has the option to cover spouse and dependent children under the same policy.

What Are the Benefits of Group Term Life Insurance?

1. Term policy

You never know when a person may unexpectedly experience an unfortunate situation in life, like a severe illness or an accident, that could possibly contribute to death. A group term insurance policy's primary purpose is to provide financial support to the employee's family in the event of death during the tenure of the policy. Nonetheless, Raghnall’s group term life insurance insurance policy coverage will allow the employee’s family to continue living comfortably in the aftermath of the incident.


2. Employees are fully protected

The employment benefits package includes health insurance as a perk. You are enrolled in the plan once your application has been accepted by the firm. The individual insurance can continue to be in effect even if you leave the firm and if you acquire a supplementary individual plan from some employers in addition to the group policy.


3. Cost-effective 

Because a group plan covers a lot more individuals than personal insurance, the premium is substantially lower. Obtaining insurance protection against a variety of risk factors is unquestionably preferable through group insurance coverage.


Who Is Eligible for Group Term Life Insurance?

1. Employer-employee groups

2.Small and medium enterprises (SMEs)

3. Professional groups 

4. Start-ups 

5. Microfinance institutions

6. Banks and non-banking financial institutions

Plans for group term insurance are beneficial to both businesses and employees. Hence, companies may find it beneficial to invest in a group term insurance plan. Raghnall's Employee Benefits Practice continuously offers exceptional service and adds value to a company's employee benefits insurance program at every stage of the value chain. Apart from this, Raghnall also offers more insurance solutions like group health insurance, business insurance solutions for general liability insurance, trade credit insurance, etc. as well as excellent bespoke employee benefits plans.

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