Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

What is Group Insurance?

A group of people is all covered by the same insurance policy under a group insurance plan. Regardless of an individual's age, gender, occupation, or socioeconomic situation, such a plan offers the same level of insurance coverage to everyone in a group.

  • Sep 24, 2018
  • 8,033 Views

Updated on: 26 May 2023

Any high-performing company’s people and their happiness are its foundation. Workplaces will always have a productive environment as long as people are happy with their jobs and employers.

Many factors, including financial security, a wide range of obligations, professional growth, and recognition, influence employee satisfaction. Group insurance plans help employees’ need for financial stability.

Key takeaways

  • Group insurance offers comprehensive coverage for various aspects, including health, life, disability, dental, travel, and vision, protecting against unexpected events.
  • An employer or other significant organization, such as a union or association, may provide group life insurance to its employees or members.
  • Group insurance is a valuable asset that promotes employee satisfaction, attracts top talent, and fosters a sense of security within organizations.
  • Understanding the features, eligibility criteria, benefits, and types of group insurance empowers individuals and organizations to make informed decisions and maximize the advantages of this vital form of coverage.
  • Individuals must not undergo a medical examination or underwriting to purchase group life insurance.

Your workplace might provide you with health or life insurance, depending on where you work. Typically, you may get this insurance for a low price and split the premiums with your employer.

What is Group Insurance?

Group insurance, usually referred to as employee benefits or workplace insurance, is a type of insurance that provides coverage to a number of people affiliated with one another, such as employees or members of an association. Compared to individual insurance plans, it often offers better terms and costs and provides collective protection.

Generally, companies purchase group insurance for their employees. Group members can avail themselves of such cover for a discounted cost because the insurer’s risk is spread across all the individuals covered by the policy.

Why is Group Insurance Required?

A group insurance policy’s hassle-free system for offering group term life insurance coverage at scale is one of the most significant factors to consider. The group insurance policy is perfect for covering a group of people who fit under a joint insurance group or category for employers, associations, organizations, banks, or financial institutions.

However, it is crucial to thoroughly compare various insurance plans before purchasing a group insurance policy.

Types of Group Insurance Policy

When protecting a group of individuals from various risks, group insurance policies offer a powerful solution. These policies come in different forms, each addressing specific needs and offering multiple benefits. Group insurance policies can vary based on the specific needs and characteristics of the group. Here are some common types of group insurance policy:

Group Health Insurance

One of the most common types of group insurance, group health insurance provides coverage for medical expenses, including doctor visits, hospitalization, prescription medications, and preventive care. It may occasionally offer a range for an employee’s dependents or family.

Group Life Insurance

Group life insurance scheme offers a death benefit to the beneficiaries of the insured individuals in the event of their passing. A group term insurance provides financial protection and peace of mind to the families of the insured.

Group Disability Insurance

When an accident-related disability renders a person unable to work, group disability insurance replaces that person’s income. It helps individuals maintain their financial stability during challenging times.

Group Travel Insurance

An insurance policy that covers a group of people traveling together is known as group travel insurance. It offers protection against various risks, such as trip cancellation, medical emergencies, baggage loss, and other travel-related incidents. It is a convenient and cost-effective option for organizations, families, or friends traveling together.

Types of Group Coverage

A group term insurance policy mostly covers a particular group of individuals who are part of a common entity or association. This can include employees, members of an institution, or affinity group members. The policy is structured to provide insurance to all members of the group who are eligible. A group insurance plan covers the groups listed below:

Formal Group

A formal group refers to a well-defined or structured group, sometimes called an employer-employee group, with common affiliation, including company employees, members of the organization, or members of a professional association. Such group insurance plans are often offered as employee benefits by employers, and the coverage extends to all eligible employees and sometimes their dependents.

Informal Group

An informal group comprises people affiliated with one another but may need a formal organizational structure. Examples of informal groups include social clubs, neighborhood associations, and friend groups. It is possible for informal groups to receive group insurance coverage, although this is less common. To do so, they can either create a legal entity as a group or work with an existing association or organization that offers insurance alternatives to its members.

Key Features of Group Insurance

It is time to comprehend the critical aspects of choosing group insurance now that we are familiar with its definition and group coverage. Specific features of group insurance policies may vary depending on the insurance provider, the group size, and negotiated terms between the sponsor and the insurance company. Here are some such features of group insurance:

  • A group insurance plan offers standardized or collective coverage to a defined group of individuals at affordable premium rates since the risk is shared among many people. This approach allows the pooling of risk and ensures each group member receives the same level of coverage at affordable rates.
  • Group insurance covers everyone under the same plan regardless of group size. The program could be implemented as a collective personal accident insurance, group travel insurance, collective health insurance, or group life insurance plan.
  • Group insurance operates under a master policy held by the sponsoring organization, whether an employer, association or another entity. The master policy outlines the terms and conditions of coverage and is administered by the insurance provider.
  • Corporations frequently offer group insurance as a perk for workers. The insurance policy’s conditions are often negotiated by the employer, who may also contribute a portion of the premium on the employees’ behalf.
  • As long as a group member, they are protected under the group insurance plan. If a member leaves the group, the cover ceases.
  • Employer and employee groups, as well as non-employer and employee groups, such as credit card holders or participants in social or cultural organizations, can make up a group.

Benefits of Group Insurance

Undeniably, the most significant group insurance benefits are that it offers coverage to all group members, irrespective of their gender, age, profession, and socio-economic background. However, here are a few of the numerous group insurance benefits to both individuals and the sponsoring organizations:

Comprehensive Coverage

Group insurance offers broad coverage for various insurance products, including health, life, disability, dental, and vision insurance. This ensures that individuals and their families are safeguarded from a variety of risks and can access essential medical treatments.

Cost-Effective

Group insurance policies often offer savings on costs when opposed to individual insurance policies. Because the premiums are shared across the group, there are fewer expenses per person. This lowers the cost of group insurance for those who would otherwise have to pay higher premiums for individual coverage.

Simplified Administration

Group insurance simplifies administrative tasks for both individuals and the sponsoring organization. The insurance provider typically handles policy enrolment, premium collection, claims processing, and customer service. This lessens the administrative load and saves time and effort for all parties concerned.

Ensured Issue Enrolment

Many group insurance policies include a guaranteed issue policy, which permits eligible people to enroll in the policy without having to submit to a medical examination or provide documentation of their physical fitness. As a result, those with pre-existing diseases or health issues can still get insurance.

Increased Financial Security

Group insurance allows people and their families additional financial security. By offering benefits or compensation to the insured or their beneficiaries in the event of unanticipated medical costs, disability, or death, the insurance coverage helps lessen the financial load.

Wellness Program and Preventive Care

Group insurance plans frequently include preventive care services and wellness programs to encourage healthy lifestyles and the early identification of health problems. These initiatives could provide access to resources that promote general well-being, wellness consultations, health screenings, and vaccinations.

Enhanced Employer Retention and Attraction

Offering group insurance as an employee perk has the potential to be a valuable tool for firms looking to recruit and keep top talent. It provides employers with a competitive edge in the employment market and shows a dedication to employee well-being.

Ease of Mind

Group insurance offers people and their families peace of mind since they know they are protected against unexpected circumstances. People are able to focus on their jobs, household lives, and overall quality of life with this state of mind because they aren’t always concerned about the potential financial strain that may result from medical crises or other covered situations.

Eligibility of Group Insurance

Eligibility criteria for group insurance can vary depending on the sponsoring organization and the particular insurance policy. Standard eligibility criteria for group insurance are as follows:

  • Depending on the group life insurance scheme, a group is required to have 10 to 50 members.
  • A person must be 18 years old to be eligible for group insurance.
  • The upper age limit may vary and range between 60 years to 80 years.
  • All participants must be full-time and active members of the group.

Wrapping Up

Group insurance effectively brings people together and gives them reasonable, all-inclusive protection against dangers. While most people get hung up on the meaning of group insurance or its definition, they often need to remember that these plans can offer so much more than basic life or health coverage.

The combined power of the group opens up prospects for better costs, streamlined enrolment, and improved benefits, whether it be employees, members of an organization, or a group of travelers. Group insurance promotes a sense of community and shared responsibility in addition to protecting individuals by utilizing the strength of numbers. So whether you are planning a trip with friends or looking for employee benefits, group insurance is the key to gaining access to a world of security and comfort.

Kotak e-Term

Download Brochure

Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Do Life Insurance Premiums Increase Every Year?

Is Life Insurance an Investment?

5 Common Life Insurance FAQs and Answers

Is It Advisable To Have Multiple Life Insurance Policies?

Benefits of Term Insurance with Critical Illness Rider

Nominee in insurance - A Complete Guide on nomination in insurance

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Why do most Indians choose the wrong way to buy life insurance?

Customer Awareness on Information Security

What Is Social Impact Investing and How Does It Benefit Society?

Does Life Insurance Cover Terminal Illness?

Why Term Insurance for Women is Important?

Term Plan with Return of Premium (TROP)

How Much Life Insurance Do You Need?

क्रिटिकल इलनेस राइडर के साथ टर्म इंश्योरेंस के लाभ

How Much Life Insurance Costs and How Much Insurance Cover You Need?

What is Sum Assured in Endowment Policy?

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

Insurance Vs Investment - A Guide to Your Financial Goals

How to Make Death Claims on Life Insurance?

How to Find the Best Term Insurance Plan in Seven Steps

Reasons Why Term Insurance Claims Get Rejected

Important Terminologies of Life Insurance

5 Ways to ensure faster settlement of claims

5 Benefits of Gifting Life Insurance Cover to Your Spouse

Life Insurance and Retirement Planning

Why Renewal of Term Insurance Plan is Important

6 Different Types of Insurance Policies

Difference Between Insurance and Assurance?

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

Top 5 Common Life Insurance Myths and Facts

What Is a Whole Life Insurance Plan?

What is Life Insurance?

Choosing a Life Insurance Beneficiary

Is it Worth Buying Disability Rider on Term Insurance?

Life Insurance for Overweight Applicants

Why You Should Never Cancel Life Insurance Policy

Kotak Life Claim Settlement Ratio

How to Choose the Right Life Insurance Policy for Your Age?

When are Millennials required to take out a life insurance policy?

All About Life Insurance and How It Works?

Can NRI Buy Life Insurance in India?

How to Revive the Lapsed Life Insurance Policy?

जीवन बीमा क्या है?

Why Buying a Term Insurance is Important for all Parents

What is a Single Premium Term Plan and its Tax Benefit?

Why is Medical Test Important While Buying a Term Insurance?

How to Use Different Types of Life Insurance for Retirement Planning?

Can You Transfer Life Insurance Policies to Another Company in India?

Most Common Life Insurance Riders to Enhance Your Existing Policy

Think About Life Insurance Sooner than Later

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

क्या जीवन बीमा एक निवेश है?

Beware of Phishing & Fraud Insurance Calls

A Term Insurance Guide for Disabled People

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

What Is Staggered Payment Option Under Term Insurance Policy?

Insurance Changes You Need to Make Post Marriage

Different Types of Insurance Policies in India

5 Things to Keep in Mind While Buying Life Insurance Policy

All about Life Insurance Calculators

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Important Life Insurance Terms You Must Know

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Take 100% Responsibility of Your Family with Term Life Insurance

Term Insurance Tips for NRIs in India

Does Family History Affects your Term Life Insurance Rates?

जीवन बीमा पर ऋण

Term Insurance Vs Life insurance: Small Details, Big Differences

How to Buy a Life Insurance Plan?

Should You Buy Life Insurance After Getting Married?

6 Things You May Not Know about Life Insurance

5 Advantages of Life Insurance Going Digital

5 Reasons Why a Women Should Buy a Life Insurance

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

What Is the Procedure to choose a nomination in life insurance policy?

7 Superficial Reasons People Avoid Buying Insurance Online

Sabse Pehle Life Insurance

What are the Benefits of Endowment Policy?

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

8 Things to Consider Before You Buy Life Insurance

What are robo-advisors in insurance?

Life Insurance Nominees: 5 Must-Know Facts for Beneficiaries

Different Types Of Life Insurance In India

All about IRDAI

Life Insurance for Millennials

What is the Difference Between Limited and Regular Pay Insurance Plan?

What Is Investment Insurance?

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Life Insurance Beneficiary

Types of Life Insurance Or One Investment, Many Options

5 Reasons Why You Need Life Insurance in College

Does Life Insurance Policy Cover Covid Death?

Biggest Life Insurance Myths

Can a Term Plan be the Substitute for a Retirement Plan?

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

FAQs on Life Insurance

Terms and Conditions of Term Insurance Plans

How Do Term Insurance Plans Differ for Smokers?

Staying Insured While Investing

All about Your Rights and Duties While Buying Life Insurance Policy

Do Your Financial Planning with Life Insurance!

Why Life Insurance Is Always a Smart Decision

Difference Between Money Back and Endowment Policy

How Does Life Insurance Work?

NRI Premium Payment Options

Always keep your Nominee informed

Various Term Insurance Premium Payment Options Available in India

What is Underinsurance & The Dangers of Being Underinsured

Life Insurance Vs. Mutual Funds Investment

Adding A Child to Your Life Insurance Policy?

Guide for Buying Online Term Insurance Plans for Senior Citizens

Best Insurance Plans in India

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

What is the Difference Between Insurance and Reinsurance?

Life Insurance Plans for Women

How to Choose Life Insurance for All Ages?

Why Online Term Insurance Plans Cheap?

9 Most Important Things You Must Learn About Paying Life Insurance Premium

How To Choose The Right Life Insurance

Voluntary Life Insurance Policy Vs Group Life Insurance

What Should One Expect During the Medical Evaluation for Life Insurance?

All You Need to Know About KYC

Who Is A Nominee In A Life Insurance Plan?

In India, should NRIs purchase life insurance?

Why Should You Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

First Job? Here’s Some Tips on How to Manage Finances

Guidelines for Linking Aadhar and PAN to Insurance Policies

Key Things to Review in Your Life Insurance Policy Document

How do life insurance payouts work?

5 Easy Steps to Buying A Policy

What is the Current Trend in Term Insurance?

Life Insurance vs Mutual Funds

How Many Insurances Should I Have?

“Life” Insurance or “Death” Insurance?

Why Your Family Should Know About Your Life Insurance Policy?

Health Insurance VS Life Insurance

Term Life Insurance vs Accidental Death Insurance

How to Choose a Life Insurance Policy

Process of Filing A Claim For Life Insurance

What is Human Life value and a Human Life Value Calculator?

Life Insurance and Millennials

Types of Insurance You Must Invest in for Secure Future

Why One Must Buy Term Insurance before 25 Years

Details Required To Be Filled In A Life Insurance Form

What Happens If I Stop Paying My Life Insurance Premium?

Digital Life Certificate for Pensioners Seeking Pension

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Life Insurance Policy Closure

What is Insurance Coverage? Overview, Types, and Examples

Why do I Need Life Insurance?

Compare Different Life Insurance Products Offered By Kotak Life

Types of Life Insurance Policies in India

Health Insurance VS Life Insurance

Important Features of a Term Insurance Plan

How to Calculate Human Life Value(HLV)?

Choosing Between Short-Term & Long-Term Insurance Plans

How to Customize Your Life Insurance Policy with Riders

Is Life Insurance For Millennials Really Needed?

Role of Life Insurance in Your Financial Portfolio

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

All About Backdating in Life Insurance

How Much Life Insurance Cover Do I Need?

Role of IRDAI in the Insurance Sector

बीमा क्षेत्र में IRDAI की भूमिका

Life Insurance for Overweight Applicants

Why Do Life Insurance Agents Avoid Selling Term Plans?

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

How Often You Must Review Your Life Insurance Policy?

Does Life Insurance Pay for Suicidal Death?

What Is Insurance Rider and It’s Benefits?

How to Buy a Term Life Insurance Online

Loan Against Life Insurance Policy

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

Life Insurance with Money Back vs Without Money Back

भारत में जीवन बीमा पॉलिसियों के प्रकार

Is It Time to Review Life Insurance Policy of Yours?

What happens to joint life insurance after divorce?

What is Minimum Life Insurance Policy?

Choose the Nominee of a Term Life Insurance Plan Wisely