It is impossible to run a successful business without efficient employees. They should be considered as family members and when you look after your extended family, they take care of the business. A group term life insurance will give assurance to the employees that you care for them. It will give them peace of mind that their families will not suffer in their absence.
An employer can certainly reward the employees with term insurance. The insurance cover will ensure that the family members of the employees are looked after during their absence. Such an insurance plan not only covers the risk of death of the insured but also provides financial assistance to the dependents. In case of an untimely demise, the employer will pay a certain amount to the nominees. With the help of a group term life insurance plan, the employee will be able to provide financial assistance to the family when he is no longer around to support them.
How does it work?
In a group term insurance, the administrator will choose the sum assured and the premium amount will be based accordingly. The premium payment will cover all the employees for one year. Either the employees can be given a cover free of cost or they might need to pay a nominal premium. If the employees have to pay a part of the premium, it will be deducted from the salary.
Features of group term insurance
Discussed below are a few important features of group insurance.
- Employers can easily add members to the policy. Members can be added at any time of the year.
2. In order to give extra coverage to the employees, add-ons and riders such as accidental death benefit rider and critical illness rider, among others can be added to the plan.
3. The policy covers many employees, which makes the premiums affordable as compared to individual plans.
4. The policy covers employees even if the death happens out of the country.
Benefits of group term insurance
One of the benefits of group term insurance is that the employer will also be benefitted along with the employees. This insurance plan is a good way to boost the relationship between an employer and an employee. In such a plan, the plans are insured automatically without undergoing any health tests. The employer will gain the confidence of the employees and will be able to claim a tax deduction on the premium paid.
It is very important to choose a group term insurance plan wisely. Many insurers offering this policy but as an employer, you need to consider the needs of your employees and make a wise decision. Do not focus only on the premium because it might be possible that an insurer offering a lower premium could have a poor claim settlement ratio. Review different companies and do an online comparison to make the right buying decision. A group term plan will give ensure that your employees live stress-free, which will improve their productivity and eventually benefit the business.