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.

Is Group Term Life Insurance Provided By Employer Sufficient?

Group term life insurance policy is provided by the employer, but it has a lot of pros and cons which you should be aware. Read on to know more about it.

  • Dec 19, 2018
  • 4,287 Views

Group term insurance policy is usually the policy that offers life insurance cover to a group of people. Companies normally subscribe to it to offer insurance protection to their employees. It is one of the perquisites offered today by big companies to hire and retain talent. It aims to protect the employee’s family from financial burdens in case of his/her untimely death. Immediate family members (beneficiaries) are given the amount insured after the policyholder’s death.

The question has been long debated - if you are getting a group term insurance by employer, do you really need another life insurance policy. Let us look at a few points of discussion on the same.

One size does not fit all

The company will offer the same insurance policy to all its employees. Even if the features slightly differ based on your designation and salary slabs, the basics of the policy given stay the same. The main purpose of a life insurance is to ensure that it meets your family’s financial needs after you. The insurance provided by employer may be good but it may not be the best one for you. For example, if the company is giving you an insurance cover of INR 25 lakh, it may not be enough for you if you have multiple dependents and other financial liabilities. If that is the only policy you have, the money given may not be enough for your family, if something happens to you and they may face a financial crisis. In such cases, it makes sense to have another life insurance policy that covers you for a larger sum.

Age limit

The insurance provided by employer may have a specific term limit. Once you reach the term, the policy may expire. If you switch your job or retire, the policy won’t be valid for you. This will leave you uninsured. You will also have to go through the hassle of getting insurance on your own and the premium may be higher (compared to what it would be if you apply for it at a younger age). Getting insurance when you are older also comes with a lot of terms and conditions, which may not necessarily be in your favor.

Coverage can end without a prior warning

Group term insurance by employer usually is renewed every year. In case there is a change in the management or if the board of directors suddenly decides that they no longer want to insure their employees, they can conveniently cancel off your insurance without warning. This can leave you unprotected and vulnerable to financial liabilities. If you have another plan covering you, the termination of the insurance by your employer will not be that big a hassle.

Group term insurance cannot be converted to an individual policy

One of the main negatives of the insurance provided by employer is that it is sacrosanct. You cannot increase the coverage amount. In case you leave the company, you cannot convert the company policy into your own individual insurance policy. The terms and conditions of the group life insurance policy are decided by the employer and the insurance provider. You cannot customize the policy by adding on optional riders. You have to be fine with whatever the insurance provider offers you, as selected by your employer.

Life insurance is very subjective. It needs to cater to your personal requirements. Group life insurance policy provided by your employer may not be the best for you and your family. While it has its own set of benefits like some back up in case of an emergency and no premium to be paid, it is not enough and you must not rely on it alone.

However, having said the aforementioned points, there are some attractive group insurance plans launched to help large organizations meet the increasing needs of their employees. For instance, some leading insurance companies offer the following benefits in their group insurance plans:

  • Life cover of INR 1 crore for less than INR 19 per day
  • No need of a medical test for life cover up to INR 1 crore
  • Tax savings
  • The benefit of optional critical illness
  • 10 times CTC cover for a period of 10 years

Therefore, you must keep all the pros and cons of a group insurance term plan in mind before depending on it completely. If the group insurance plan is providing the above-mentioned benefits, you can avail of it. However, you must also have an individual life insurance plan as a strong backup option if any untoward incident were to occur.

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

How To Evaluate Your Term Insurance Quote?

5 Reasons to Have a Child Education Plan

8 Benefits of Term Insurance You Should Know

Benefits of Short-Term Life Insurance Policy

3 Things to Consider When Buying Term Insurance, If You are Single

How to Identify Term Insurance According to Your Needs?

Why Should You Not Take A Term Plan Without Medical Test in India?

Can Term Insurance Plans Be Purchased As A Gift?

Protection for your family

टर्म इंश्योरेंस क्लेम प्रक्रिया

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Choosing Riders for Insurance Plans

Term Insurance With Riders In India

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Is term Insurance Needed for People With No Dependents?

Can a Housewife Buy a Term Insurance Plan - All You Need to Know

Why 1 Cr Term Plan Is Necessary For Family?

5 Term Insurance Benefits for Single Women

Why Married People Should Buy Term Insurance Under MWP Act?

Why Term Insurance Is Better Than ULIP?

Term Insurance Age Limit – Term Plan for All Age Groups

Understanding Term Insurance Riders

Term Insurance Claims – Make Sure Your Claims Are Never Rejected

Why Should You Buy Term Insurance in 2022?

Can You Get Term Insurance Without Income Proof?

Difference Between Short-Term and Long-Term Insurance

All About Term Insurance Inbuilt Coverage

How Much Term Life Insurance Cover Do I Need in India?

Can You Increase Your Term Insurance Cover?

What Are the Best Term Insurance Plans for Planning Retirement?

क्या ₹1 करोड़ का टर्म इंश्योरेंस पर्याप्त कवर है?

Term Life Insurance Vs Money Back Life Insurance

4 Things To Expect From Your Term Insurance Plan in India

What is a term insurance plan with a return of premium, and how does it work?

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Insuring Against Disability With Disability Insurance Rider

Planning For Children's Future

4 Reasons Why You Need Critical Illness Cover

Top 3 Reasons Why You Should Buy A Term Plan Now

Tax Benefits of Term Insurance in India

Types of Life Insurance Policies in India

Which Death Type Does Your Term Plan Not Cover?

5 Benefits of Early Retirement Planning

Why Spending Time with Friends is Essential for Your Mental Health?

Do I Need to Give a Medical Test for Term Insurance in India?

5 Things To Consider While Buying Term Insurance Plan

5 Reasons to Buy Term Insurance When You are in Your 30s

What is a short term insurance policy?

Is It Good To Buy A Term Insurance Plan In 2022?

Importance of Term Insurance at Every Stage of Your Life

Insuring Protection Against Death With Death Insurance Rider

8 Factors to consider before choosing a Critical Illness Insurance

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Should You Buy a Term Plan After 40?

What is Term Insurance? Term Plan Meaning and Definition

Do term insurance policy have a waiting period after buying?

How Does Short-Term Life Insurance Work?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Why Buy Term Insurance Even at Rising Rates?

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

What All Documents Required For Term Insurance In India?

What Is a Renewable Term Insurance Policy?

Increasing Term Insurance and Riders

6 Reasons That Make Term Insurance a Must Buy

Why Buy Term Insurance Plan With a High Cover?

What are the Documents Required for Term Insurance Plan?

Cost of Term Insurance Likely to Increase Soon

Zero Cost Term Insurance Plan: What is & Should you buy it?

Advantages of Buying Term Insurance in Your 50s

टर्म इंश्योरेंस बनाम लाइफ इंश्योरेंस: अंतर और लाभ समझें

What Are Insurance Riders and How to Choose Them in a Term Plan?

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Difference Between Term Insurance and Endowment Plan

Term Life Insurance Plan for Smokers vs Non-Smokers

10 Most Frequently Asked Questions - FAQs on Term Insurance

What Happens if you Hide Facts in your Term Insurance?

9 Most Frequently Asked Questions on Term Insurance

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

While Buying Term Insurance Compare Features, Not Just Premiums

Make Your Online Term Plan Your Familys Monthly Payout

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

What is Insurance Premium? | Definition of Insurance Premium

Why Term Insurance Is Important in times of COVID-19?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Advantages & Disadvantages of Term Insurance in India

11 Types of Death not covered in Term Insurance Plans

Difference Between Term Insurance and Endowment Plan

Term Insurance: Smokers vs Non-Smokers

Different Types of Premiums in Term Insurance?

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Can I Make Changes to My Term Insurance Policy Post Purchase?

How Does Term Life Insurance Work? Learn the Benefits

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Reasons You Need Term Insurance Plan as a Self-Employed Person

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Steps on How to Buy Term Insurance Online

What Is the Correct Age to Buy Term Insurance?

Eligibility Criteria for Buying Term Insurance in India

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Everything About Claim Settlement Ratio for Term Insurance

What Types of Deaths Are Covered in a Term Insurance Plan?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

How to Compare Term Insurance Online

Why Should New Parents Buy Term Life Insurance?

How Does Term Life Insurance Work? Learn the Benefits

Is a Term Insurance Policy Portable?

Is Life Insurance Investment Worthy Enough

Calculating Term Insurance Premium

How Much Cover Should I Take In A Term Plan?

6 Types of Death not covered in Term Insurance Plan

Why You Must Include In Your Financial Planning?

Why is it important to buy term insurance plan?

9 Point Guide on how to File Income Tax Return Online

Term Insurance Plans and Policies for Smokers

What Should Be The Duration Of Your Term Plan in India?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Should Youngsters, Working Couples Buy Term Insurance Plans?

Can I Extend the Tenure of My Term Insurance Plan?

Gift Your Father A Term Insurance Plan This Father's Day

Busting Myths and Facts About Term Insurance Policies

How to Surrender Term Life Insurance When You Have No Liabilities?

9 Ways to Help Family Members in Financial Trouble

Individual Life Insurance vs. Group Term Life Insurance

Term Insurance Basics You Should Know

Different Types of Protection Plans

Why should single women purchase term life insurance?

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Can Senior Citizens Avail Term Insurance?

What Should You opt for - Limited or Premium Pay?

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Tips to Choose the Right Term Period for Term Insurance Plan

All you need to Know about Term Insurance Plans for housewives

Should you have more than one nominee in your term insurance?

How Does BMI Affect Your Term Insurance Premium?

Ensure Protection Against Death, Disease & Disability With Life Insurance

How To Calculate The Amount Of Term Life Insurance You Need?

Can I Buy Term Insurance for a COVID-19 Patient?

Side Effects of Covid-19 Booster Doses

Why Term Plan Should Be The First Step To Securing Your Future?

4 Methods to Calculate How Much Term Insurance You Need

How To Choose the Right Sum Assured Under a Term Plan?

Does Term Insurance Cover Accidental Death?

How Not To Get Your Term Insurance Claim Rejected

Buying A Term Insurance Plan? Take These Factors into Account

All about Online Income Tax Calculator

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Comparing Term Plans – What Should You Look Out For

Term Insurance Calculator - Everything You Need To Know

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

What are incremental term insurance plans?

How Much Term Life Insurance Cover Do I Need?

How To Change The Nominee in Term Insurance?

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Why Premium Amount for Term Insurance is So Low?

Should you buy a Renewable Term Life Policy?

10-Year Term Life Insurance Policy - Explained in Detail

Term Plan with Spouse Cover

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

How do I Calculate My Term Insurance Premium

Joint vs Individual Term Insurance: Which One Should You Choose?

Is Term Life Insurance Plan an Investment or Expense?

Is ₹1 Crore Term Insurance Good Enough Cover?

Can I Get Term Insurance on Behalf of My Spouse?

Why does every working women need life insurance?

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Term Insurance with Critical Illness

Do Beneficiaries Pay Taxes on Term Insurance?

Should You Have Multiple Term Life Insurance Policies?

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Endowment Plans vs Term Plans: Understanding the difference

Do You Need Term Insurance Cover After Retirement?

Online vs Offline Term Insurance: Which Is The Better Option To Buy

How To Choose the Right Term Insurance Plan?

What is Critical Illness Policy?

Insurance Policy for Housewife In India

10 Ways to Mentally Refresh After a Stressful Day

How to Buy 1 Crore Life Insurance Policy Without Medical Test

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Insuring yourself against Ill Health with a Critical Illness Rider

Term Plans are Definitely Cheaper than You Think!

Is There Any Tax Benefit on Term Insurance?

Why Short-Term Insurance Plans Deserve a Second Look?

8 Things To Do After Buying Term Insurance

Insuring Against Accidents with an Accidental Death Insurance Rider

Know How to Invest at Every Age for Larger Returns

How to Buy ₹1 Crore Life Insurance Policy Without Medical Test?

Why Should You Add a Rider to a Term Insurance Plan?

Planning For Son or Daughter's Wedding