Features of group life insurance

November 30 2020

All of us should invest in life insurance policies. Life is very uncertain. Anything can happen to anyone. Life insurance backs us up when we face certain accidents. During such hard times, financial support becomes the most important thing for us. Life insurance plans give us that support. These policies are more for our family members and for those relying on us. There are different types of life insurance plans. The most popular plan is the group insurance plan. This plan ensures a whole group.

Types:

Now, the question comes, who can apply for a group insurance plan. There are several types of group insurance plans. The major types are,

Employees-employee group insurance plan
Professionals’ group insurance plan, like lawyers, doctors, bankers, accountants, etc.
Credit society group insurance plan
Weaker or minority group insurance plan
Family group insurance plan

There are some common rules applicable to all the groups. The policy covers all the individuals belonging to one group.

Features

In order to understand the group life insurance policy, one must go through the features of such insurance plans.

This insurance policy covers the lives of the whole group of people.
The group can form with the employees of any organization, members of any co-operative, or even members of a family.
All the members of this group come under an umbrella life insurance policy. All of them are covered with the same plan.
The policy is owned by the head of the organization of the family.
All the group members who pay for the policy or a part of the policy can be named as beneficiaries and receive a certificate.
As the premium is divided into the members of the group, this policy is cheaper than any other life insurance policies.
Due to a low premium, people who cannot afford an individual policy can opt for this one.
The group insurance policy covers a large portion of the population.
All the members of a group pay the same amount for the policy as a premium. It does not depend on the risk-factor of any individual person.
The insurance company has to cover all the group members who pay the premium for a policy. They have no right to reject any member because of their risky profile.
There is no need for medical checkups to avail of this policy. So, people, who are facing trouble in registering for an individual policy due to medical reasons, can easily apply for this one.
Unlike other policies, even if few members stop paying the premium or terminate their policy, other members of the group will not get affected.

Thus, group insurance plans are very beneficial for all of us. If a group applies for this policy, more customers get attached to that insurance company which is very beneficial. So, group insurance policies are not only beneficial for you, they are also beneficial for the insurance company.