Group Insurance

The group insurance provides the life insurance protection in group policy to many groups like professionals, employers- employees, weak part of the society, co operatives etc. It provides also the insurance cover for the people in some approved profession at lowest premium cost.

The group insurance policy has very low premium. This plan is especially beneficial to those persons for whom the other normal policies are the costlier proposition. The group insurance policy can extend the cover to the large section of population which includes those people who can’t afford the individual insurance.

For many groups, many group insurance plans are designed. Some of them are associations of the professionals like chartered accountants, lawyers, doctors, etc, credit societies, welfare funds, members of the cooperative banks, employer- employee groups, and the weaker segments of the society.

Many of the employees see the group insurance cover as the major bonus for the faithful service of company. Premium payment is deducted automatically usually from pay itself. Some of the companies will absorb a complete cost of policy as the benefit for the employees. Main advantage of group insurance policies are low premium and very simple insurability condition. The premiums are based on the combination of age of the members, occupation and the working condition of group.

The main feature of the group insurance policy is that premium cost on the individual basis can not be based on the risk. Instead in a group it is a same sum for all insured persons. Another feature under the group insurance is, one person will usually remain covered till she or he keeps on working with the certain employer and also pays the insurance premium. This is completely different from an individual life insurance policy in which an insurance company regularly has right to refuse the renewal of the person’s policy which depend on the risk profile of that person.