IndiaFirst Group Life Insurance Policy
Securing lives, creating value
Securing lives, creating values
Everybody wins with our ‘Solutions for Groups’.
IndiaFirst Life Group Insurance
Offered by IndiaFirst Life, group insurance is an umbrella of insurance solutions for groups. From group insurance for employees' protection to employee retirement growth solutions and additional riders, IndiaFirst Life group life insurance plans are designed to cover all your needs, secure lives, and create value with insightful and hassle-free interactions.
The members of any group are an asset. Their protection and the financial security of their loved ones ought to be a priority for the organisation or group they belong to. IndiaFirst Life group insurance plans are carefully designed to offer security and benefits to the group members and protection against default liabilities to the organisation.
What are Group Insurance Plans?
Group insurance plans cover specific insurance needs of a predefined group of people in a single plan. IndiaFirst Life features many variants of group insurance policies to serve the particular needs of groups such as employees-employers, professional associations, banks, clubs, and housing societies, to name a few.
In an individual policy, the life that is insured is the policyholder. The nominee listed in the plan is the beneficiary who will receive the life insurance pay-out in the case of the policyholder's untimely demise. In a group insurance policy, the employer purchasing the policy is offering the employees a service benefit. So, the employer serves as the policyholder, and the employees become beneficiaries of the policy provisions and benefits.
Every group member covered under the group insurance scheme receives cover against the same risk. Since such a group insurance policy offers identical terms to all the people covered under the plan, it negates the need for getting individual insurance policies for each member in the organisation or group.
As per the guidelines laid down by the Insurance Regulatory and Development Authority of India (IRDAI), a group is officially defined as people who come together with a common purpose or people who partake in the same economic activity. As per the guidelines, such a group is not one that is created for the sole purpose of utilizing group insurance scheme or policies. There has to be a clear connecting link of services between the manager and the group members in question.
There are many different types of group insurance plans. You can avail of a group life insurance policy or opt for a group insurance scheme that offers personal insurance, life cover, and health insurance.
How do Group Insurance Plans work?
Group insurance plans offer standardised coverage to all members at affordable rates. Since the risk is spread out over a large group of people, the premium rates offered for group insurance plans are very competitive. The group manager reaps the benefits of a group insurance scheme by providing insurance cover to many people conveniently at scale.
Types of Groups Covered under Group Insurance Plans
Two types of groups can be covered under a group insurance policy:
An employee-employer group is one where all the members in the group are employed or work for the same owner. Such groups are also known as formal groups and include companies, professional establishments, and businesses. For formal group insurance plans, the employer or owner purchases the policy.
Also known as informal groups, all the members of such a setup do not work for the same owner or employer. For informal group insurance plans, the group administrator purchases the group insurance policy on behalf of the members. Such groups include members of cultural associations, housing societies, bank account holders, and owners of the same credit cards.
Basic Working of Group Insurance Plans
Typically, insurance companies in India offer group insurance plans to cover specific risks. These include:
- Group life insurance plans
- Group health insurance
- Group travel insurance
- Group personal accident insurance plans
- Group retirement savings plans
These group insurance plans have a few characteristics that set them apart from their counterparts offering individual cover.
- A single master policy is issued for a group insurance policy. The policy names the group and is issued to the group manager or administrator. A certificate of insurance is provided to the members.
- Irrespective of the group's size, group insurance plans offer coverage to all the members under one single group insurance policy.
- Irrespective of the age, economic condition, and position of individual group members, everyone is provided standardised identical coverage under the same group insurance scheme.
- Whether there are 100 or 1000 people in a group is irrelevant. A group insurance scheme covered groups of all sizes.
- The coverage offered remains in force only if you continue as a member of the group in question. If you leave the group, the coverage typically ceases.
- Group insurance policy premiums could be charged to the whole group or individual members, depending on group insurance scheme provisions.
What are the Benefits of Group Insurance Plans?
Group insurance plans make practical sense from the perspective of the group manager as well as the members. There are many benefits offered by group life insurance plans and group insurance for employees that serve the employer and the employees' needs.
Manager Group Insurance Policy Benefits
Along with hassle-free coverage and implementation, the group manager or organisation enjoys several policy benefits:
As compared to what it would cost to get an individual policy for each member of the organisation, the premium for a group insurance scheme is much cheaper. Insurers can offer such low rates because the overall risk taken on while insuring is spread out over all the group members. This scale reduces the insurance company's liabilities, and the benefit is passed on to the organisation in the form of competitively lower premium rates.
Customisable group insurance policy
Whether your organisation is opting for a group life insurance policy or a group insurance scheme to cover health concerns, you get the benefit of customisation. Group insurance plans can be customised to suit the needs of all sub-sets within the group based on their position in the organisation, marital status, or salary slab.
An organisation purchasing group insurance for employees reflects the value that it places in all the group members. Not only does it help to create a sense of group loyalty, but it is also an added service benefit that can serve to retain employees and control attrition.
Stress-free people are at their productive best. With a group insurance policy, the group members can rest assured that their lives and their family's financial security needs are taken care of. A group insurance scheme helps employees work harder, perform better, and be more productive.
Policyholders can utilize provisions in the Income Tax Act of 1961 to avail of tax exemptions and deductions on the premiums paid for group life insurance plans and other group insurance plans.
Member Group Insurance Policy Benefits
Along with peace of mind and financial security, the group members enjoy several benefits, such as:
Those members who would find it challenging to afford an individual insurance policy benefit significantly from group insurance plans. Group life insurance plans offer comprehensive life cover to all members of the group at low rates. The group insurance policy premium is either very low or completely free for the member, as it is paid by the employer or group owner.
Insurance penetration in India continues to be low. People from lower-income groups find it difficult to get individual coverage due to the higher rates. With group insurance plans, all members, irrespective of their age, income class, gender, and position, receive standardised coverage at par with others in the group.
Many group insurance plans extend the policy's coverage to include the member's family. Typically, group insurance plans covering health concerns tend to cover the group member's spouse, children, and even parents in the same policy.
There are no pre-requisites to fulfil with group insurance plans before availing of the benefits offered by the group insurance policy. Pre-policy entry requirements such as medical tests are not mandatory while enrolling in a group insurance scheme. On the other hand, most individual plans have a set of pre-requisites that the policyholders need to fulfil before getting coverage.
Group to individual cover portability
Depending on the insurance provider and the type of group insurance plans, you may be allowed to convert your group insurance policy into a personal policy if you are exiting the group. A conversion fee is likely to be charged in such cases, but you do not need to lose your life or health cover while leaving a group.
What are the Group Insurance Plans offered by IndiaFirst Life Insurance?
IndiaFirst Life Insurance offers a wide range of group life insurance policy options that cover big and small groups alike. Here's a bird's eye view of the various group insurance plans and solutions offered by IndiaFirst Life Insurance.
Protecting the life of your employees/members becomes a lot easier with IndiaFirst Life Insurance group insurance for employees and group life insurance plans.
Pradhan Mantri Jeevan Jyoti Bima Yojana
- Yearly renewable life policy
- Available to anyone with a savings bank account
- OTC issuance
- Life cover of Rs. 2,00,000
- Minimal documentation
- Tax benefits
IndiaFirst Life Group Credit Life Plus Plan
- Group credit life insurance
- 4 different cover options
- Option between level or reducing term cover plan
- Regular, limited, or single premium payment
- Group insurance for employees
- Yearly renewable group life insurance policy
- Life cover benefit
- Voluntary or automatic group insurance scheme options
- Minimum group size – 50; add new member yearly
- Tax benefits
IndiaFirst Life Group Micro Insurance Plan
- Non-linked, non-participating, group micro-insurance plan
- Comprehensive protection group insurance policy
- Safeguard against death, ATPD, CI
- 4 different cover options
- Option between level or reducing cover option
- Flexible cover period
- No GST on premiums
IndiaFirst Group Loan Protect Plan
- Group credit-linked insurance
- 5 different cover options
- Cover up to 120% of the initial loan
- Co-sharing life cover for 4 lives
- Choice between level or reducing cover option
IndiaFirst Life Group HospiCare (Microinsurance) Plan
- Non-linked, non-participating, group micro health insurance plan
- COVID-19 financial support
- Fixed benefits
- Tax benefits
IndiaFirst Life Group Living Benefits Plan
- Non-linked, non-participating group insurance policy
- Group fixed benefit health insurance plan
- Lumpsum pay-out option
- COVID-19 financial support
- 6 cover options
- Customised health insurance plans
- Fixed benefits
- Tax benefits
Employee Retirement and Growth Solutions
Besides life cover and health insurance, IndiaFirst Life Insurance's group insurance for employees goes a step further to help create a sustainable post-retirement plan for the group members through gratuity and pension plans.
IndiaFirst Group Superannuation Plan
- Minimum guaranteed return of 0.5% p.a. on investment
- Contribute full or shared with member
- Deductible business expense contribution
- Tax benefits
IndiaFirst New Corporate Benefit Plan
- Separate plan for gratuity, leave encashment, etc.
- Minimum guaranteed return of 0.5% p.a. on investment
- Transparent and value-for-money plan
- Additional returns and bonuses as declared
- Death and gratuity benefits
- Accrued leave encashment benefit
IndiaFirst Employee Benefit Plan
- Invest future employee liabilities in market-linked options
- Uniform life cover
- 4 funds across asset classes
- Deductible business expense contribution
- Death and gratuity benefits
- Tax benefits
IndiaFirst Life Employee Welfare Plan
- Non-linked, non-participating fund-based group insurance plan
- Separate plan for gratuity, leave encashment, etc.
- Minimum guaranteed return of 1% p.a. on investment
- Non-zero positive interest rate as declared
- Additional IndiaFirst Group Term Plan option
- Additional funding on initial contribution option
- Tax benefits
IndiaFirst Life Guaranteed Annuity Plan
- Lifetime regular income to members
- Life annuity with 100% return of purchase price option
- Joint life last survivor annuity for life option for members
- 3 different annuity options
IndiaFirst Life Employee Pension Plan
- Non-linked, non-participating variable fund-based plan
- Group pension/superannuation scheme
- Minimum guaranteed return of 1% p.a. on investment
- Non-zero positive interest rate as declared
- Additional funding on initial contribution option
- Individual member level account option
- Tax benefits
What are the eligibility criteria for Group Insurance Plans?
Group insurance plans are designed to meet the specific needs of a particular group. The cover offered, details of the group insurance policy, and specific eligibility criteria of different policies are likely to differ. However, a few basic eligibility requirements need to be met across all group life insurance plans and other group insurance schemes.
- All the members of the group life insurance policy have to be full-time members.
- The minimum age at entry for group life insurance policy and other group insurance plans is typically 18 years.
- The maximum age depends on the specific policy. Some group insurance plans cap the maximum age at 60, while others allow members of up to 80 years of age.
- The minimum number of people in a group could be anything from seven to 50, depending on the specifics of the group insurance scheme. Some group insurance plans, such as the IndiaFirst Group Term Plan, have a minimum group size requirement of 50 to buy a group life insurance policy.
What documents are required to buy Group Insurance Plans?
- A completed policy form that includes policy-related details and other information is required to buy group insurance plans.
- Address proof in the form of government-issued papers such as driver's license, Aadhar card, passport, or electricity bill with the address listed on it
- Identity proof in the form of PAN card, driver's license, Aadhar card, or voter ID card
- Income proof provided by the insurance buyer
FAQs
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What are group insurance and its features?
Group insurance plans cover a predefined group of people for specific risks. A group could include members of a workplace, professional association, cultural association, housing society, banks, holders of the same credit cards, etc.
A group insurance policy may offer group life insurance, health cover, personal accident insurance, and group travel cover. IndiaFirst Life also provides group life insurance plans that serve the dual purposes of insurance and investment.
While different group insurance plans serve different functions, these are some of the basic features of the plans:
- With a group life insurance policy, a predetermined sum assured is paid out to the employee/beneficiary's family members in case of the employee's untimely death while still being a part of the group.
- In case of a member's demise, while the group life insurance policy is in effect, the sum assured received as death benefit can be used to clear liabilities such as outstanding loans o dues.
- Group insurance plans that include a superannuation component offer the benefits of a retirement plan that can be used after an employee/member has retired.
- Group retirement and growth solutions invest future liabilities towards employees (such as leave encashment and gratuity) to create a corpus for an employee's financial goals post-retirement.
- Post-five years of service, a gratuity amount is owed to an employee, as per relevant laws. Group insurance plans help create investment avenues so the gratuity corpus can grow.
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What are the types of group insurance?
- Group life insurance policy—provides term plan benefits to members while they are an active part of the group. It is one of the most preferred types of group insurance plans and is typically renewed annually.
- Group health insurance policy—provides medical coverage to group members and may extend to family members. Such a policy helps combat the rising costs of hospitalisation and other medical expenses.
- Group insurance plans with accident insurance—provides financial security in the face of a diagnosis of critical illnesses and accidental death and disability.
- Group retirement plan—provides for superannuation benefits and multiple pension annuity options.
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How is group life insurance premium calculated?
Group life insurance premium rates are very low as compared to individual insurance premium rates as the insurer's risk is spread out amongst a large number of people. Suppose the policy purchaser, i.e., the owner or manager pays the group life insurance policy premium and offers. It as a service benefit to the members. In that case, there is no cost associated with it for the group members.
The group life insurance premium is calculated based on factors such as the total expected claim cost, expenses, commissions, taxes, group size, required risk and profit margin, and applicable discounts.
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Is group life insurance a taxable benefit?
Whoever pays the premium amount for the group life insurance policy is eligible to apply for a tax deduction while filing their taxes. If the employer pays the entire premium amount, the organisation can claim the group life insurance premium as a taxable benefit. Since the employees or group members have not made the premium payment, they cannot claim the amount in their tax returns.
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How many employees do you need for group insurance?
The minimum number of employees needed to qualify for a group insurance policy differs according to the chosen group insurance plans. Some plans may require a minimum of 7-10 members to issue a group life insurance policy or health plan. Others may need a larger group size of at least 50 to give a group insurance policy.
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Can husband and wife have group health insurance?
Yes, sole proprietorship and partnership business entities with more than a single employee are considered groups. They may be eligible to get group health insurance benefits if they fulfil the insurance criteria to qualify as a 'small business' in India.
As defined by the IRDAI, a group cannot be one that has been created just for the sake of getting group life insurance plans or group health insurance. So, if you and your spouse are running a family business with no other employees, you are not eligible to have group health insurance. However, if you have at least one more employee (family or not), you can avail group health benefits for all three people, depending on specific policy details.
