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Group Insurance

Definition

Group Life Insurance is a life insurance coverage in which individual members in a family or individual employees in an office are put under one master life insurance policy owned by the head of the family or the employer in the office
Group Life Insurance also gives cover to the unexpected deaths of a family member or the death of an employee

Group Life Insurance Profits


Group Life Insurance profits are usually dependent upon the employee's lost wage. As the Group Life Insurance consists of so many subscribers or contributors the life insurance policy often offers more service coverage's at a very low cost per participant. Group Life Insurance is much more affordable than normal individual life insurances because the issuer's costs are lesser. The issuer face less trouble of paper works and they also multiply life insurance accounts at one go and this for them becomes the incentive to offer the Group Life Insurance. A feature which is sometimes common in group insurance is that the premium cost on an individual basis may not be risk-based. Instead it is the same amount for all the insured persons in the group

Types Of Group Life Insurance


There are three basic types of group life insurance: Group term life Group universal life Variable group universal life.

Group term life


The most common form of group life insurance is group term life. This is typically provided to the employees by the employer in the form of a one year annually renewable term insurance policy. Upon renewal, both the insurance company and the employer can determine whether or not to continue. Rates can also increase upon policy renewal

2. Group Universal Life This type of group life insurance policy combines the benefits of term life and whole life insurance Features of this type of group insurance include: group buying power resulting in more affordable premiums, optional cash value account, coverage that can be extended to age 100, and dependent coverage thats generally available as a rider.

3. Variable Group Universal Life Often used in executive benefit plans or as to fund retiree life insurance, variable group universal life provides flexible life insurance, a guaranteed account, and optional sub-account investment choices. Features include: affordable premiums due to group buying power, investment option (for tax-deferred accumulation), coverage that can be extended to age 99, optional dependent coverage available as a rider, and investment account options (that cover a wide range of investment styles and risks). This type of group life insurance has expenses and fees such as mortality and expense charges, fund expenses, management and distribution fees.

Group Scheme
Group Insurance Scheme is life insurance protection to groups of people. This scheme is ideal for employers, associations, societies etc. and allows you to enjoy group benefits at really low costs

Group Scheme
Group Term Insurance Schemes Group Insurance Scheme in Lieu Of EDLI Group Gr-atuity Scheme Group Super Annuation Scheme Group Savings Linked Insurance Scheme Group Leave Encashment Scheme Group Mortgage Redemption Assurance Scheme Group Critical Illness Rider

Social security Scheme


JanaShree Bima Yojana (JBY) Shiksha Sahayog Yojana Aam Admi Bima Yojana

Group Gratuity Scheme


Group Gratuity Scheme : Under section 4A of the Payment of Gratuity Act,1972 gratuity amount is required to be insured by the employers. In this context Life Insurance Corporation of India has floated a policy for insurance of gratuity to the employees of organisation.
A trust is required to be established by the employer for the purposes of managing the gratuity funds. Trust will will create a fund with the LIC against payment of gratuity. Contribution towards the fund are generally intimated by LIC to trust on annual basis. This calculation is based on accturial basis. The other part is insurance of the fund. Trust will deal with the LIC for payment of contributions towards the gratuity fund and Insurance premium for the insurance of gratuity to the employees of the company.

These premiums are to be paid on annual basis.

Group Gratuity Scheme


Life Insurance Corporation of India offers its Group Gratuity Cash Accumulation scheme to enable employers to meet their gratuity liability in a very simple and efficient manner. The scheme is formulated in compliance with Part C of the IV schedule of Income Tax Act and tax benefits are available as provided in Income Tax rules The gratuity arrangement with LIC provides the following services to the company Fund management under interest accumulation system Claim settlement on exit as per company rules/gratuity act Built in Insurance arrangement for the employees for future service MIS related to Income Tax and trusts accounts and Actuarial valuation

Group SuperAnnuation Scheme


An organization today, has not only to man the various positions with competent and trained personnel but also has to create an environment wherein they can give their best and derive a sense of well-being, a sense of fulfillment and security and take pride in their continued association with the organization. Provision of pension may be an attraction for such persons to continue in the organization and give their best to the organization, as with continuous improvement in longevity a regular income even after retirement has become a necessity. To provide the pension benefits to employees, an employer has two alternatives under the provisions of Rule 89 of Income Tax Rules 1962. Create a privately managed trust fund and as and when a member retires, purchase annuity from LIC to provide pension for such retiring member. Entrust the Management of the Pension Fund to an Insurer by purchasing its Group Superannuation Scheme.

Group Savings Linked Insurance Scheme


The people working in the metropolitan cities, occupied as they are in their day to-day activities where inflation is inevitable, find difficult to provide adequate security for their families, Individual insurance with high premium in fact does not provide adequate insurance protection. Their need for insurance protection during service coupled with adequate savings for carefree retired life remains unfulfilled. Keeping this in mind, LIC has come out with an attractive insurance scheme viz. Group Savings Linked Insurance scheme at a very low cost. Central Government has a similar scheme with minor modifications. Semi-Government Organisations, Public Sector Organisations and also Large private business houses and industrial enterprises have introduced this scheme, the salient features of which are as under:

Group Mortgage Redemption Assurance Scheme

Group Mortgage Redemption Assurance Scheme, is a Group Insurance Scheme for the borrowers of Housing/Vehicle Loans from Financial Institutions where Loan is recovered under EMI. Under the Scheme, the premium is payable in a single installment covering a decreasing life cover. Insurance cover every year will be almost equal to the loan outstanding at the anniversary date of each borrower.