Life Insurance
2024-05-14 5 Min read
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Having life insurance is always a good idea. However, getting the coverage from your employer is often seen as an added incentive. When you get coverage through your office, things become much simpler and more convenient. As in most cases, the cost of employer-offered life coverage is borne by the employer, most employees find it to be very beneficial.
A recent survey suggests that for most salaried employees, term insurance offered by their employer made them feel more financially secure. About 65% of them1 believed that life coverage offered by their workplace was a crucial factor in shortlisting their employment preferences. Post-COVID, the fears of losing their jobs, declining income and loss of life came true for a lot of employees. Employers who could help their team members build long-term financial resilience benefitted in more than one way. By offering term insurance, they could provide financial protection to their employees and encourage them to stay with the company.
The complex landscape of group term plans in the Indian insurance market
The history of insurance in India goes back almost two hundred years. Today, there are 24 life insurance companies and 34 general insurance companies in the country, which have, in more ways than one, impacted the insurance landscape. However, the problem of inadequate insurance penetration exists. Lack of awareness about the benefits of insurance, gaps between the insurance companies and the population, especially the rural population, scarcity of resources, etc., are some of the main reasons for the low numbers of term life insurance in India.
Despite the challenges, the future looks promising. Thanks to the changing regulatory framework, government support, increased awareness about insurance, and technological advancements, it is estimated that India’s insurance industry will be among the top insurance markets by 20322. In such a scenario, group term insurance, because of its widespread feature, can play a significant role in helping the insurance industry grow. Let us understand in detail what is term insurance and how you can get the best term insurance plan.
Despite the challenges, the future looks promising. Thanks to the changing regulatory framework, government support, increased awareness about insurance, and technological advancements, it is estimated that India’s insurance industry will be among the top insurance markets by 20322. In such a scenario, group term insurance, because of its widespread feature, can play a significant role in helping the insurance industry grow. Let us understand in detail what is term insurance and how you can get the best term insurance plan.
Understanding group term insurance plans
Group term life insurance is a common term used to refer to the insurance policy that covers a group of individuals under a single plan. The aim is to provide financial coverage to the nominee or the beneficiary in case of the insured individual’s uncertain death. In a group term life insurance plan, an organisation or a company provides term insurance to all its employees under one plan. These plans are typically nominated by a master policyholder from the company, preferably the head of the organisation or employer (in case the owner and the head are different), who in turn acts as a common administrator for the members of the group.
Group term insurance is comparatively cheaper and is offered typically at a competitive price to a company than individual term insurance. The group term insurance covers the employees until the individual resigns from the company or their policy term contract has ended.
The table below shows how term insurance benefits both the employer and the employee:
Group term insurance is comparatively cheaper and is offered typically at a competitive price to a company than individual term insurance. The group term insurance covers the employees until the individual resigns from the company or their policy term contract has ended.
The table below shows how term insurance benefits both the employer and the employee:
| Benefits of a group term plan for employers | Benefits of a group term plan for employees |
|---|---|
| It is one of the effective methods at a reasonable cost to provide coverage for employees under one policy | Group term insurance is probably the best way to protect the family in case of the death of an employee |
| The procedure followed to add members to the group is quite a simple one | Processing time and fees are typically less and simpler |
| Providing term insurance can act as a strategy for retaining employees | Group term insurance is inexpensive as compared to the individual policy |
| The premiums that are paid by the master policyholder can get them tax benefits under Section 37 of the Income Tax Act, 1961, where the premium is taken as a business expense. The death benefit paid to the nominee is tax-free. | In case the employees pay the whole/ a part of the premium, they also qualify for tax benefits of up to INR 1.5 lakhs, under Section 80C. The death benefit is tax-free. |
About the SUD Life Group Term Insurance Plus
Life’s uncertainties affect us all! Regardless of wealth or financial status, term insurance offers vital protection for individuals and their dependents. These plans have remained popular since their inception and gained even more significance with globalisation and the rise of multinational companies in the country.
The following features make the SUD Life Group Term Insurance Plus an appropriate option to offer comprehensive coverage for employees:
1. Death benefit:
In case of the unfortunate demise of an insured employee, the assured death benefit will be paid to the nominee. The sum assured can be as follows:
● In the employer-employee group term insurance scheme, the assured sum will be uniform for all the employees, or it may be dependent on the salary per annum, or it may depend on the grade of the salaried employee.
● In the case of non non-employer-employee term insurance scheme, the assured sum will be as per the framed policy/ certificate of insurance.
2. Annually renewable:
The SUD Life Group Term Insurance Plus is renewable on an annual basis and gives life cover to the employees of an organisation at a very reasonable rate, securing the peace of mind of employees and employers. The annual subscription renewal model of SUD Life Group term insurance plus is helpful for the companies opting for it. It gives flexibility for changes, if any.
3. Size of group:
SUD Life Group Term Insurance Plus offers two variable sizes of a group. A minimum category could be classified as a group that consists of 10 members for a contract taken by a company (employer-employee group) otherwise, it would be a minimum of 50 members in the scheme. The other classification would be for the group term insurance scheme, which is of 10 members under the Employees’ Deposit Linked Insurance Scheme, 1976.
Note: There is no maximum limit for the group term insurance coverage.
4. Income tax benefits
The employer gets a tax benefit for the premium paid towards the group term insurance under Section 37 of the Income Tax Act of India, 1961. In case a part of the group plan premiums are paid by the employees, they are eligible for tax rebates under section 80C. The death benefit that is received by the nominee is exempted from income tax under Section 10(10D).
5. Multiple premium payment modes
SUD Group Term Insurance Plus gives the option to pay the premiums in any of the four premium modes: annually/yearly, half-yearly, quarterly, and monthly. This flexibility and ease in the premium payments acts as a benefit for the policyholders.
6. Enhanced coverage through riders
Term Insurance Plus by SUD offers two riders:
● Accidental Death Benefit:
In case of the unfortunate event of the death of an insured employee due to an accident, 100% of the rider sum assured at a maximum capping of INR 50 lakhs will be payable to the nominee, and thereafter, the coverage is closed.
● Accidental Dismemberment Benefit:
Here, a percentage of the benefit for the sum assured of the rider is paid to the insured individual. Depending on the dismemberment, the compensation ranges between 15% to 100%. In case of a claim wherein only partial benefit is used, the policy will continue to be in force.
7. No medical tests:
Star Union Dai-ichi Life is one of India’s leading insurance companies that offers many unmatched benefits and features. Amongst them is the no-medical test benefit that can offer an individual or a group the policy to take up irrespective of their health conditions.
8. Life cover at competitive rates:
Star Union Dai-ichi Life offers some of the best term plans. Their policies and schemes have set a benchmark standard in the market. They offer benefits at unmatchable standards and competitive pricing range. The policyholders and their families could be protected financially at a reasonable cost which also provides mental peace and security at work.
The following features make the SUD Life Group Term Insurance Plus an appropriate option to offer comprehensive coverage for employees:
1. Death benefit:
In case of the unfortunate demise of an insured employee, the assured death benefit will be paid to the nominee. The sum assured can be as follows:
● In the employer-employee group term insurance scheme, the assured sum will be uniform for all the employees, or it may be dependent on the salary per annum, or it may depend on the grade of the salaried employee.
● In the case of non non-employer-employee term insurance scheme, the assured sum will be as per the framed policy/ certificate of insurance.
2. Annually renewable:
The SUD Life Group Term Insurance Plus is renewable on an annual basis and gives life cover to the employees of an organisation at a very reasonable rate, securing the peace of mind of employees and employers. The annual subscription renewal model of SUD Life Group term insurance plus is helpful for the companies opting for it. It gives flexibility for changes, if any.
3. Size of group:
SUD Life Group Term Insurance Plus offers two variable sizes of a group. A minimum category could be classified as a group that consists of 10 members for a contract taken by a company (employer-employee group) otherwise, it would be a minimum of 50 members in the scheme. The other classification would be for the group term insurance scheme, which is of 10 members under the Employees’ Deposit Linked Insurance Scheme, 1976.
Note: There is no maximum limit for the group term insurance coverage.
4. Income tax benefits
The employer gets a tax benefit for the premium paid towards the group term insurance under Section 37 of the Income Tax Act of India, 1961. In case a part of the group plan premiums are paid by the employees, they are eligible for tax rebates under section 80C. The death benefit that is received by the nominee is exempted from income tax under Section 10(10D).
5. Multiple premium payment modes
SUD Group Term Insurance Plus gives the option to pay the premiums in any of the four premium modes: annually/yearly, half-yearly, quarterly, and monthly. This flexibility and ease in the premium payments acts as a benefit for the policyholders.
6. Enhanced coverage through riders
Term Insurance Plus by SUD offers two riders:
● Accidental Death Benefit:
In case of the unfortunate event of the death of an insured employee due to an accident, 100% of the rider sum assured at a maximum capping of INR 50 lakhs will be payable to the nominee, and thereafter, the coverage is closed.
● Accidental Dismemberment Benefit:
Here, a percentage of the benefit for the sum assured of the rider is paid to the insured individual. Depending on the dismemberment, the compensation ranges between 15% to 100%. In case of a claim wherein only partial benefit is used, the policy will continue to be in force.
7. No medical tests:
Star Union Dai-ichi Life is one of India’s leading insurance companies that offers many unmatched benefits and features. Amongst them is the no-medical test benefit that can offer an individual or a group the policy to take up irrespective of their health conditions.
8. Life cover at competitive rates:
Star Union Dai-ichi Life offers some of the best term plans. Their policies and schemes have set a benchmark standard in the market. They offer benefits at unmatchable standards and competitive pricing range. The policyholders and their families could be protected financially at a reasonable cost which also provides mental peace and security at work.
Conclusion
When it comes to giving your employees a secure and well-protected environment, offering them the coverage of a term insurance plan, can go a long way. No one knows what the future holds. Nevertheless, with the right coverage from SUD Life Group Term Insurance Plus, you can assure your team members that their goals and aspirations for their loved ones will not be derailed, even in case of an unfortunate event.
References
1.https://www.livemint.com/insurance/news/life-insurance-offered-by-employer-a-major-factor-when-choosing-a-job-survey-11614594169656.html
2.https://timesofindia.indiatimes.com/blogs/voices/future-of-insurance-in-india/
Reference: SUD Life Group Term Insurance Plus (UIN: 142N046V03)
2.https://timesofindia.indiatimes.com/blogs/voices/future-of-insurance-in-india/
Reference: SUD Life Group Term Insurance Plus (UIN: 142N046V03)
Disclaimer
Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life Group Term Insurance Plus ” is the name of the plan. Neither the name of the insurance company nor the name of the plan in anyway indicates the quality of the plan, its future prospects or returns. SUD Life Group Term Insurance Plus (UIN: 142N046V04)
Star Union Dai-ichi Life Insurance Company Limited IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
Star Union Dai-ichi Life Insurance Company Limited IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
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