Keep Your Employees Motivated with Group Term Life Insurance

Employees are the asset for any company. If you take care of their family, they will take care of your business. So, buy a group term life insurance that gives peace and assurance to employees that their family will not suffer even if they are not around to support them. As after all, “a happy employee is the productive employee”.

“Always treat your employees exactly as you want them to treat your best customers” - Stephen R. Covey

No matter how small or big business is, to make it successful, always a team of hard-working employees is required. And how can a company reward their employees? Companies can insure their employees by offering them group term life insurance. The insurance cover is one sort of employee benefit tailored to look after their family’s needs in their absence. The insurance offers great peace not just to the person who is insured but also to those who are dependent on him. In the case of unfortunate demise of the employee, the employer pays a fixed sum amount to his/her nominee.



Through the insurance, the employee can give sufficient financial assistance to his family members even in his absence. Some insurance companies also customise their plans to meet the necessary requirements of the employees.This insurance policy is highly useful to counter the high financial liabilities of a person who is the breadwinner of the family.

Features of a group term life insurance
Following are the key features of Group term life insurance

• Members can be added at any point of the year

• Add-ons or riders like critical illness rider, accidental death benefit rider, etc.; can be attached to the insurance policy to give extra coverage to employees

• As one policy is extended to many employees, premiums are affordable as compared to individual policies

• The policy offers coverage even if death takes place outside the country

How does group term life insurance work?
Following is the working style of group term life insurance:

• A group administrator chooses the sum assured and the premium is paid accordingly

• This initial payment covers all members of the group for the next one year

• Employees are given the coverage inthe nominal premium amount or free of cost. In case where employees are paying a part of the premium, the same is deducted from his/her salary

What are the benefits of group term insurance for employees?
Let’s look at two major benefits of a group term life insurance for employees:

 Employees are assured of financial assistance to their families in case of their demise. It is one of the great ways to ensure that the death of the breadwinner will not affect the financial condition of the family

 In a group term life insurance, employees are automatically insured regardless of the health tests

How is it beneficial for employees?
Through group term life insurance, it is not just the employee who gets benefited but also the employer. The insurance serves as an ideal way to boost the relationship between the employer and employee. Employer earns the confidence of the employee and under one policy he gives life cover to all his employees. Further, employers can avail tax benefits on the premium paid as per the prevailing tax laws.

Choose a group term life insurance wisely
Now you know the benefits offered by a group term life insurance; the next step is to buy a great group term life insurance cover. There are many companies offering group term life insurance in India, but it is imperative as a customer to understand which provider will be matched with your needs in the most effective manner. An insurer offering a lower premium could have a poor claim settlement ratio and customer support. Therefore, it is advised to do a reference check with the existing group health insurance clients to get their review about different insurance companies.

When you deal with an effective insurance company, you can ensure to get the best possible deals for your employees. Moreover, an insurer with a good service record would be able to add or delete employee records in their books with your minimal intervention.

(About the Author: This article has been written by Utkarsh Sahu, who writes for various tech mags and admires technology with paradigm-shifting attributes.)