Group Insurance FAQ
--Select Language--
(No Data Found)
- Group Life Insurance Cover is a life insurance cover offered to a group of people. It is usually provided by an employer to its employees or taken by groups of people with common interests (affinity groups).
- The employer takes up the cover on behalf of the employees. The policy document is in the name of the employer who usually pays the premium. This cover provides a benefit to beneficiaries if the member dies during the defined cover period.
- This insurance cover pays a lump sum in the event that a member of the scheme dies while in service of the employer or while a member of a covered affinity group. The lump sum is usually a multiple of the member’s salary or a fixed amount.
- As with other types of group benefits, group life insurance is generally cheaper than similar individual policies. For this reason, group life insurance is often a key component in employee benefit packages.
Group Life Insurance helps employers or an affinity group to ease the financial distress that might befall dependants of an employee/member upon his/her death.
| Benefits of group life cover for employees | Benefits of group life cover to the employer |
|
|
- A Group life policy is normally arranged by an Employer for the benefit of their Employees or facilitated by an affinity group for the benefit of the members.
- The benefits for employees are normally fixed as a multiple of salary. The most common multiples in the market are 3, 4 and 5 times the employee’s annual salary. Therefore, the higher an employee’s salary is, the higher their benefits.
- The benefit can also be arranged as a fixed amount where, for example, one category can be given a benefit of 5 million while another is given one of 2 million. A cover facilitated by an affinity group will be on a fixed amount.
- Group life insurance mainly covers death from any cause (illness or accident).
- Additional covers include Permanent Total Disability cover, Out patient services, In patient services, Last Expense cover, and Critical Illness cover etc.
- Anyone above the age of 18 and below the normal retirement age or 65 years of age can be covered. Cover for members who are over 65 years of age can be negotiated as needed.
- The cover can be taken and paid for by the employer or by the members where the premiums are deducted from their salary.
- Every member is required to complete an application form and a nomination of beneficiary form where they choose their preferred beneficiaries and what percentage of benefits each should get. A member can make changes to their nomination form as many times as they need to.
- If a member chooses minors as beneficiaries, then they are required to appoint a guardian.
- The benefit becomes payable upon the death of an employee who is a member while in the service of the employer or while a member of a covered affinity group.
- Benefits under the Permanent and Total Disability Rider also become payable when a member becomes totally and permanently disabled. In this case, 30% of the group sum assured subject to a set maximum will be payable. If death occurs afterwards the balance of 70% of the benefits become payable to the next of kin.
The employer or the members.
All costs of the medical tests are paid for by the insurance company. If there is a co-insurance, insurer will pay up to the limit.
This is the threshold or limit of benefits set by the insurance company such that members whose benefits do not exceed this amount are not required to undergo medical tests. The amount of benefits up to this limit will be accepted regardless of the member’s state of health.
Astha Life insurance company will advise the members whose benefits are above the Free Cover Limited on the appointed panel of clinics, hospitals, diagnostic centres or doctors. The medical examiner must not be the member’s personal doctor.
Yes, if the scheme has a Permanent Total Disability rider, hospital insurance rider or a Critical illness rider. However the death benefit is only payable upon death.
Any member whose insurance benefits are above the Free Cover Limit will be required to undergo some medical tests as guided by the insurance company in order for them to enjoy the full benefits.
- The employer notifies the insurer of the claim. A discharge form is signed by the employer on behalf of the member. The claim amount is then paid to the employer so that they can forward it to the nominated beneficiaries.
- For affinity groups, the officials play this role.
You stop being a member of the scheme since the scheme is arranged by the
employer for the benefit of its employees.
However you can arrange with the insurance company and take up individual life cover.
- Completed proposal forms by each member
- Premium must be paid
- Medical examination for members whose benefit are above Free Cover Limit
- Claim notification in prescribed format
- Age limit of 65 years- members above this age can be considered on special terms
No. The premiums are paid in exchange for giving you cover benefits in the event of death, permanent disability and critical illness. Once the insurance period of one year has ended, the utilized premiums cannot be refunded.
This is usually provided as a rider benefit under the Group life cover that caters for the funeral expenses of a member. The benefits are paid out by the Insurance company within 48 hours after notification.
- The insurance company issuing the policy could give you the option of converting to an individual life insurance policy.
- If you convert, it means that instead of your employer, you will be personally entering into a new contract directly with the insurance company. You will be responsible for paying the premiums of this individual policy directly to the insurance company.
DOWNLOAD OUR MOBILE APP & ACCESS IT FROM ANYWHERE
Downloading our app offers a multitude of benefits and enriches your overall experience. With our app, you gain convenient access to a range of features and functionalities that enhance productivity as well.
