Nothing can be more peaceful than long-lasting financial security. Isn’t it? If you are capable enough to provide your member with the same, then it would be one of the noblest gestures from your part. In fact, demonstrating your carefulness and compassion to your group members as well as their family members will help you in the long run. This is the reason by Bajaj Allianz has introduced Group Term Life Insurance Plan. It is more than just a piece of important document, rather it’s a promise.
Who can go for this Group Term Life Insurance Plan?
This scheme can be set-up by any of the non-employer- employee and employer-employee groups. The main intention of this plan is to render a sense of financial stability and security to your members, especially in this world where misfortune waits in every corner. This scheme is quite beneficial. The benefit is paid in the form of Pension, Provident Fund accumulation or gratuity. This plan provides you w with an opportunity to offer adequate mental and financial relief to a member’s family on an account of his or her premature death at pretty affordable rates. The coverage is available in the following types:
Uniform or Equal Cover – As the name suggests this scheme offers equal coverage to all the members of your group.
Graded Cover – The coverage under this variant is graded on the basis of the following parameters:
Designation
Salary Slab
CTC (Cost to Company)
Liability amount
Outstanding loan, if any
Bank deposit size
Future Service Gratuity under the Gratuity system
Life insurance coverage instead of EDLI (Employee Deposit Linked Insurance)
Any other parameter
How does the plan work?
Bajaj Allianz Group Term Life Insurance Plan offer fundamental life insurance coverage to the members. Let’s take a quick look at how the entire thing works:
All the members covered under the plan would be protected under the same and single policy taken by you.
The amount of sum insured for each and every member would be according to your proposal. The individuals should have reference to some acceptable factor, like occupation, salary, etc.
The members would be able to select the type of disbursement they want – death benefit in the form of lump sum or partially in the form of lump sum and the rest of the amount spread over the selected term paid in uniform installments.
In case of the demise of the member, the amount of sum insured would be paid according to the selected option.
In case of joint life coverage, both self as well as spouse would be protected and benefit of death would be payable to either of them on account of the first death.
The pay might get eligible for the purpose of profit sharing. However, that would depend on certain factors, such as, quoted premium, life years specified in the scheme and experience rating, in case you have chosen the same in the plan, as a reduction in the renewal premium of the subsequent year.
The plan can be, non-contributory or contributory. That means, employer or/and members can contribute to the amount of premium payable in regard to the members and their spouses.
If the members shell out the premium amount, the member cover would be offered for 1 year, from the commencement date of risk of him or her. Otherwise, it would be charged proportionately right from the commencement date of risk of him or her up to the completion of the next policy term.
This scheme is a 1-year contract that can be renewed thereafter. At the time of policy renewal, the insurance provider has the authority to decline or renew the same, as per the underwriting norms approved by the Board.
Joint life cover would be provided to spouse only.
What benefits are offered?
Death benefit
The members of a group has two options to choose from, when it comes to death benefits. It can be chosen at the time of policy commencement or at the anniversary of the policy (any one). If no option is selected, then Option I would be applicable by default.
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Option I |
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On the demise of the member |
The amount of sum insured would be paid |
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On the first death (Joint Coverage) |
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Option II |
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On the demise of the member |
X percent of the sum insured would be paid as lump sum. The balance sum (1 minus X percent) would be paid in installments (equal) in arrears. It would be spread over the period of installment selected by you subject to 10 years (Max.) The value of X should be 10 at least
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On the first death (Joint Coverage) |
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What are the eligibility requirements?
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Eligibility Criteria |
Details |
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Minimum age of entry |
14 years, both EE (Employer-Employee) groups and NEE (Non-Employer- Employee) groups |
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Maximum age of entry |
For EE – 79 years |
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For NEE – 69 Years |
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Age at maturity (Max.) |
For EE – 80 years |
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For NEE – 70 Years |
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Policy Term |
1-year renewable |
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Minimum Sum Insured |
Rs. 1000/member |
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Maximum Sum Insured |
No limit |
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Minimum size of the group |
For EE – 10 people |
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For NEE – 50 people |
Some frequently asked questions
Are there any loan, surrender or maturity benefit?
No, such provisions are not there under thus policy.
Are there any tax benefit?
Yes, there are certain tax benefits gives as per the related tax laws.
