header-search-icon

Group Insurance - Definition & Meaning

Group Insurance - Definition & Meaning
November 16, 2023
Group Insurance covers a defined group of people, for example members of a professional association, or a society or employees of an organization. Group Insurance may offer life cover, health cover, and/or other types of personal insurance.

Most insurance companies in India have introduced group insurance policies to meet insurance needs of specific groupsincluding professionals, employers-employees, co-operative societies,among others.

Group insurance has several advantages chief among which is a life cover made available to members irrespective of age, gender, socio economic background or profession,so long as they belong to the group that is applying for insurance.

While there are various objectives of group insurance, they cover the following basic functions:

a. Term insurance

The sum assured is paid out to family members of the deceased in case of death over the employment tenure with the company.

b. Annuity

Superannuation schemes of group insurance policies provide for retirement plans that can be availed of by employees post-retirement, at existing NAV (group insurance), as pension.

c. Gratuity

On completing five years of service an employee becomes eligible for gratuity subject to relevant laws.Group insurance provides investment options to the organization to create a corpus for gratuity.

d. Savings

It mobilizes savings of participating members which can meet long-term financial goals like child's education or marriage.

e. Covering liability

It can provide for outstanding dues or loans (like home loans) of participating memberson death or disability.

 

Similar Articles:

 

Show Full Article
Hide Full Article
Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile

Author Profile Written By:
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance solutions - protection, pension, savings, investment, annuity and health.