Group Term Life Insurance Policy

Group Term Life Insurance

Every individual wants to ensure that his loved ones do not face any financial hardships due to any eventualities in life. This is where a financial backing seems necessary. Term life insurance plans like the Group Term Life Insurance plan are the perfect financial back-up that one can avail to ensure complete financial protection of their loved ones.   

What is Group Term Life Insurance?

A group term life insurance is nothing, but an insurance coverage provided to a group of people or anyone who is a part of the community. It offers financial independence to the insured individual’s beneficiaries. A group term life insurance plan not only is inexpensive compared to individual term plans but also comes with a whole lot of other term insurance benefits, making the plan a perfect fit for your needs.

Apart from being available for a community, group term insurance is one of the employee benefits offered by companies to their employees. Under this group term insurance policy, a lump sum death benefit is paid to the family of the insured in the unfortunate event of his death.

How does Group Term Life Insurance Work?

The working of Group Term Insurance is explained below –

• An eligible individual from the community or organisation (the employer) is issued a master policy.

• To initiate the group term plan, the primary policyholder has to pay the initial premium amount. This amount covers all the members in the group for one year.

• Then the eligible group members are given the option to choose the coverage. This amount can be a lump sum or linked to a salary account.

• In case any member wants to enhance the basic coverage of the policy, they will have to pay the additional premiums from their pocket.

Group term life insurance plans are annually renewable. The master policyholder has to continue paying the premiums so that the members of the community/organisation can enjoy the benefits of the policy.

Inclusions under Bajaj Group Term Life Insurance Plan

Bajaj Allianz Group Term Life Insurance covers the following things –

• It allows the addition of eligible members at any point in time over the year.

• In case the insured individual dies, the decided sum assured amount is paid to their beneficiaries.

• The insured can enhance the scope of the policy with add-on covers. However, he/she has to take care of the additional premiums charged on the opted benefits.

Exclusions under Bajaj Group Term Life Insurance Plan

The things that are not covered under Bajaj Allianz Group Term Life Insurance are as follows –

• No critical illness benefit shall be paid on diagnosis of critical illness due to attempted suicide, or intentionally self-inflicted injury, within one year from the date of commencement of membership.

• There is a waiting period of 90 days applicable to critical illness, from the date of commencement of the policy.

• If the insured commits or attempts a criminal act, whether alone or with anybody else.

• AIDS, any AIDS-related illness or HIV infection.

• Alcohol or solvent abuse or taking of drugs, narcotics or psychotropic substances unless taken in accordance with the lawful directions and prescription of a registered medical practitioner

• War, invasion, an act of a foreign enemy, hostilities (whether war be declared or not), armed or Unarmed truce, civil war, mutiny, rebellion, revolution, insurrection, military or usurped power, riot or civil commotion, strikes

• Taking part in any naval, military or air force operation during peacetime

• Engaging in or taking part in hazardous activities, including but not limited to, diving or riding or any kind of race; martial arts; hunting; mountaineering; parachuting; bungee-jumping; underwater activities involving the use of breathing apparatus or not. Hazardous Activities mean any sport or pursuit or hobby, which is potentially dangerous to the Insured Member whether he is trained or not

• Participation by the insured person in any flying activity, except as a bona fide, a fare-paying passenger of a recognized airline on regular routes and on a scheduled timetable

• Any Pre-existing medical condition. “Pre-existing medical condition” definition will be as per health regulation.

If you are looking for individual term insurance, you can consider Bajaj Allianz Life Smart Protect Goal Term Insurance available on Finserv MARKETS.

Requirements of Group Term Life Insurance

• To be eligible to reap the benefits of the group term life insurance plan, one has to be a member of the community or organisation.

• All the members of the community/organisation can avail the benefits of the policy.

• The master policyholder is the only one who can add members to the existing policy.

• The newly added members can begin to avail the benefits of the policy immediately after the addition to the group.

• This term insurance policy offers basic coverage to the members. However, the members will have to pay the extra premium if they opt for additional benefits.

Family/nominee should contact Finserv MARKETS who will work with Bajaj Allianz for speedy claims processing. The claim can be raised within 30 days after the requisite documents are ready with Finserv MARKETS, from where the claim request can be taken after checking the documents and the same will then be sent to the Insurance servicing department at TCS Bhosari – Centralized ops. Once Bajaj Allianz Life Insurance Corporation (BALIC) receives all the documents, the same will be processed within 30-60 working days of the timeframe to settle the claim.