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Advantages of Group Term Life Insurance

By Finserv MARKETS - Aug 20,2019
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Benefits Of A Group Insurance Plan

Group Term Life Insurance is a bond or a form of insurance, designed to serve multiple people under one single policy. A group insurance policy is not just restricted to employer-employee groups. This policy also extends its branches to groups like customers of banks, NGOs, professional groups, non-banking financial institutions, and microfinance institutions.

A group insurance policy gives financial assistance to the beneficiaries of the employee, in the event of his/her death. It offers various benefits like lower premiums compared to individual term insurance plans and no requirement of any medical examination. Some group insurance policies also provide covers for outstanding loans to a group of borrowers, while some cover critical illnesses and disability benefits.

The benefits of group term life insurance policies for the employers and employees are:


Default Insurance Cover 

A person qualifies for a group insurance policy, just by being a part of the group. This is a beneficiary feature for a person who does not have a personal life insurance policy.

Gratuity Funding 

This allows the employees to work towards their savings systematically. A group insurance policy assists employees to save along with giving them a life insurance coverage.

Tax Benefits 

Group Term Life Insurance plans offer tax benefits to both employers and employees. Under Section 10(10D) of the Income Tax Act, death benefits to employees are exempt from tax deduction. Additionally, group insurance plans are effective in employee welfare as well as retention. At Finserv Markets, you can apply for a Bajaj Allianz Group Term Life Insurance plan in three simple steps. You can even customize your group insurance plan with a critical illness rider that covers 11 different ailments.

Customisable to suit employee needs 

Group insurance policy coverage can be customised with add-on features like allowance, repatriation allowance, accidental death, etc., thereby allowing a person to club all features in one single policy.

No Medical check-ups 

In a group term insurance policy, employees don’t have to undergo the mandatory health check-up before availing the scheme.

Cost effective 

Since a group plan covers a large number of people, the premium in such policies is much less when compared to the individual policies.

Worldwide Coverage 

Group Term Life Insurance policies offer extensive coverage to policyholders. Even if the insured dies in a foreign land, the beneficiary will receive the policy pay-out benefits in India.

A group term life policy is the best way to get insurance coverage for multiple people in just a few easy steps. Also, it gives you the advantage to customise it your way. Bajaj Allianz Group Term Life Insurance from Finserv Markets offers a life insurance cover at subsidized premiums. With Bajaj Group Term Life Insurance no medical examination is required even for a higher sum assured. To read more about how a group term life insurance works head to Finserv Markets today!


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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522