If you own a company, you should know that employee benefits are a crucial step towards an organised approach to your business insurance needs. Company owners can confuse group life insurance and group personal accident coverage when looking for an addition to their employee benefits package.
So let’s take a nice look at what each offers. Both are very important to small or medium-sized businesses and can help protect against financial loss due to the death or disability of key members of your staff.
Let’s get started!
What is a Group Life Insurance?
A group term life insurance policy is a single agreement that provides life insurance coverage to individuals. Companies can get substantially cheaper rates for each employee than if they purchased multiple individual plans by acquiring group term life insurance plan coverage on a wholesale scale through an insurance company for its employees.
Group term life insurance recipients do not need to pay out of their pocket for the policy benefits. Individuals who desire to get more comprehensive coverage may decide to have their monthly premium payment debited from their wages. Just like with ordinary insurance policies, covered individuals must name one or more nominees before the policy takes effect. The beneficiaries can be altered at any time throughout the policy’s term.
When acquiring a group term life insurance policy for its employees or members, the company or organisation keeps the master agreement. Employees who choose group coverage typically obtain a confirmation of coverage, which they must give to a future insurance carrier if they leave the firm or organisation and their coverage is terminated.
What are the Benefits of Group Life Policies?
Here is a list of all the benefits offered by group life policies:
Group term life insurance allows businesses to give employees significantly reduced premium prices than if the companies had to pay the same sum from their wallets. Aside from this, most insurance companies provide considerable savings on annual rates if the company fulfils a certain number of covered individuals under one group term plan. This may be a significant benefit for businesses since it lowers costs and lets them offer workers what is frequently seen as essential coverage.
2. Peace of Mind
Group term life insurance policies are an excellent way to protect your worker’s family and give financial security in the case of their untimely death. Many companies worldwide have begun offering group term life insurance to their staff as a benefit of working for the company.
3. Death Benefit
Group life insurance provides a death benefit to the listed nominees of the insured individual if they die during the policy tenure. This lump sum can be used by the people dependent on the individual. The term nominee refers to other persons in an insurance contract who have some interest in the benefits of a death benefit payment.
Regarding group term life insurance, one of the most important factors is the coverage level offered and the amount. You need a plan that provides adequate coverage, which will be enough for your family’s future needs. In addition to providing protection, group term life insurance plans also give access to add-ons such as critical illness coverage and accidental death protection to bring an extra layer of security for your loved ones.
What is a Group Personal Insurance?
Group Personal Accident Insurance protects its members against accidents leading to disability or death. It is commonly available as corporate group insurance for a company’s employees/ owner/ board members. Irrespective of your group size, you can buy customisable group personal accident cover to suit the requirements of your group members. The group personal accident cover also offers discounts based on the number of members.
What are the benefits of Group Personal Insurance Policies?
Here is a list of all the benefits offered by group personal insurance policies:
1. Death Benefit
The most crucial benefit of personal insurance coverage is the accidental death benefit. In the case of the insured’s untimely death in an accident, the nominee specified as the policyholder’s beneficiary will be given the principal sum as the accidental death payout.
2. Disability Benefit
A disability claim can be submitted if the policyholder has a total disability due to an accident. The insurance provider would pay the insured amount as compensation based on the amount of disability stated in the policy coverage. The insured might use this compensation sum to cover income and other living expenses while recovering.
3. Peace of Mind
Group Personal Accident offers protection against a range of tragic events that may lead to the death or disability of the insured. Every business has a fundamental duty to provide insurance coverage to protect its staff from these potentially hazardous conditions.
Group accident insurance coverage protects numerous persons working in the same firm. This arrangement is made because several insurances are less expensive than single policies. A member of a primary business with a significant number of workers can get savings on all of these plans to safeguard them and their family or loved ones.
group insurances like group health insurance, and group life insurance, group personal accident insurance are significant benefits that can help build a functioning and safe work environment. With Plum Insurance, choosing the best coverage has never looked easier.