Group Insurance Schemes in Detail

Updated on Aug 07, 2020

Overview

In today's world, group insurance is the essential part of customers' needs. It is usually offered by an employer or another large-scale entity such as big organizations to its workers or members etc. We offer a variety of insurance schemes for your future betterment. We mainly focused on plans like retirement; we have a wide range of offerings.

Types 

There are two types of groups covered under the group insurance scheme that is described below:

Formal groups: Formal groups are those groups where all the members work under the same group owner. Under this type of group scheme, the policy is purchased by the customer. Such as companies, businesses, organizations, professional organizations, etc. 

Informal groups: These groups to all those members who don't work for one group. In this insurance scheme, the policy is purchased by the group administrator on behalf of the members. This type of system includes members of the same cultural societies as well as the same holders of the same credit cards.

Importance 

  • Group insurance schemes offer a policy such as large-scale entities, prominent associations or labour organizations, etc.
  • Group insurance schemes are relatively quite inexpensive or maybe free even.
  • Some organizations may require group members to participate in some amount of time before they can grant the full coverage.

Different types of Plans

  • Group advantage insurance scheme: It is a one-year term plan for the customers. This scheme is unique as it provides our customers with the flexibility to modify their benefits as well as the coverage too. With the group insurance plan, you can either opt for some fixed sum assured or a linearly reducing one. This scheme covers the death or an accidental death benefit.
  • Group edge insurance scheme: Ensure family members or an employee this we expect from our well-wishers. To safeguard them by ensuring the future and protecting them from future risks. Group edge insurance plans help you to minimize the risks involved in any way.
  • Pradhan Mantri Jeevan Jyoti Bima Yojana scheme: In this government of India had issued affordable insurance coverage for all the Indians. This scheme is a non-participating and non-linked term insurance plan. It provides a life insurance coverage plan for your family in case of any misfortune.
  • Sampoorna kavach insurance scheme: Group insurance scheme offers you multiple coverage options.

Benefits

Group insurance plans come up with its benefits. We provide benefits to everyone under the insurance policy. Take a look at the benefits of the group insurance scheme.

  • Lower premium: The premium paid for group insurance is lower than the premium paid at the individual policy by each member. This is because the risk involved overall spreads more too all the members. Thus, it reduces the liability of the insurance company.
  • Increase group loyalty: Providing the coverage to all the members of the group. In a group insurance scheme, it tends to increase the reliability of the group.
  • Tax benefits: The group scheme comes up with another interest on income tax too. The policyholder can avail of the returns on the premium paid for the insurance policy.
  • Policy customization: A group insurance scheme can be customized according to the sub-groups. The policy can be adjusted according to the needs of the customer. Insurance schemes can be divided into various groups according to customer wants.

 Characteristics

All group insurance schemes will come up with specific features that make it different from the individual insurance policy. Some of the facts of group insurance scheme:

  • All group members covered under the scheme: A group insurance policy covers all the members under one policy. There is no matter of the size of a group.
  • Standardized coverage: The coverage gives you another benefit as it remains the same for the entire group despite the age and position or economic status etc.
  • Groups of all sizes covered: Insurance companies provide another coverage scheme irrespective of how big the size. Whether the group is small or big, they CommSuite to everyone.
  • Coverage ends when leaving the group: The insurance scheme is covered under insurance policy gives you coverage as long as you are connected with group insurance once you leave the group coverage will end.

The group insurance scheme helps the customer or employer to participate more in the group insurance policy. It also minimizes the chance of financial risk. The premium paid in a group insurance scheme also is less as compared to an individual system. It gives you life insurance for your family too. Thus, it protects you from further crisis. 

As time has passed, multiple group insurance emerged that was established on the fixed policy. It offers you a financial benefits package for you and your family. For more information regarding insurance schemes, you can visit our site. 

Official Website for Central Government Employees Group Insurance Scheme (CGEGIS)

You can visit the official website here.

Frequently Asked Questions

Q. What is a Group Insurance Scheme?

Group Insurance Scheme is life insurance security to groups of people. 

Q. Who can benefit from the Group Insurance Scheme?

The Group Insurance Scheme is ideal for employers, associations, societies, etc. as well as allows you to enjoy group benefits at actually low costs.

Q. How many types of Group Insurance Scheme?

There are two types of Group Insurance Scheme:

1) Formal groups

2) Informal groups

Q. How many types of Group Insurance Plans?

There are four types of group insurance plans that are offered by insurance companies in India: 

1) Group Life Insurance 

2) Group Health Insurance 

3) Group Personal Accident Insurance 

4) Group Travel Insurance


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WRITTEN BYVarsha Verma

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