Group insurance means “group term life insurance “.In simple words, we can say that type of life insurance which is provided to a group of people.Group term life insurance schemes offer financial liberty to the involved employees family in the event of death.  Group term life insurance provides financial assurance to the assignee of the covered in case of death of the insured. Group term life insurance schemes have become an essential ingredient in assisting packages given to the employees by the employers. most of the friendly organization offer group term life insurance to it”s members. It is a tool for providing employee incentive and improving employee retention  Benefits of group term  life insurance for employers 1-It is beneficial to both employees and employers 2-Return of the funds will be earned according to the selected fund chosen by the clients. 3-Employers are aided in funding their gratuity liability with ease under the group term life insurance policies. Gratuity funds are built strategically to fulfill subsequent gratuity payments, thus, reducing the burden on the employer. 4-Group term life insurance in India is more economical / cheaper because executing schemes on group basis has a lower cost. 5- If the selected fund performs better the returns will also increase and simultaneously decreasing the expense to the employer.  The return and the expense have the negative relationship. 6- Some plans offer employers with both life insurance covers along with gratuity benefits. Benefits of group term life insurance to employees 1- Employees are guaranteed of financial benefit being given to their families in the adverse of their demise/death or critical illness, etc. 2- Employees can benefit from the difficulty of medical tests be done away with until their fee cover limits. 3-  The premiums paid by their employers are not treated as perquisites ( bonus, gratuity, dividend etc) 4- Death benefit can be enjoyed by the employees that are exempt from tax under section 10 ( 10 D) 5- Easily available as the documentation process is very easy. 6- Can be customized according to the need of the employees enrolled. 7- Provide security for the insured’s family. 8- Acts as a safeguard for insured’s financial interests.   who can take group term  life insurance Group term life insurance policies are offered to the following sections of people-

• Employer-employee groups
• Non employer- employee groups
• Banks
• Professional groups
• Non-banking financial institutions
• Microfinance institutions

There are many varieties of group term life insurance policies. Following are some examples-

• Some plans may offer uniform covers to all of its members
• Some plans offer ranked covers for various grades of members
• Some schemes provide cover for outstanding housing loans, car loans, etc.

Some schemes have riders like critical illness benefits, accident benefits, disability benefits, etc. Here are the eligibility criteria for group term life insurance   Why SHOULD I choose group term life Insurance? This is the million dollar question, below are some points which can give more clarity to this question 1-Members can be added at any point of the year 2-A pre-decided sum assured is paid to the beneficiary of the insured in the event of death 3-Add-on covers are provided as riders that insure for critical illnesses, accidental deaths, disabilities, etc. 4-Application process is quick and easy 5-The minimum size of the group is 50 members 6-Terminal illness is provided as a built-in benefit 7-Cheaper than individual policy cover 8- Employees can enjoy the benefits they are entitled to while maintaining a healthy and strong connection with the employers Riders Accident and Sickness Total Permanent Disability Accelerated Terminal Illness Rider Accident and total permanent Disability Rider Critical Illness Accelerated Accidental Death Rider Partial / Permanent Disability Rider EXCLUSIONS SUICIDE CLAUSE – IN case an insured member commits suicide within 12 months from the risk drawn date of the member, his/her nominee will receive 80 percent of the premiums paid in respect of the insured member. this clause is not applicable to renewed policy and compulsory employer – employee groups. How group term life insurance works Step 1 The first step is to decide the amount of cover by discussing with all the members. with mutual consent in a group, an amount is set, which is for every member in the group. Step-2 step 3 step -4