How Employers Can Choose The Right Group Term Insurance?

Many employers have started providing group term insurance to their employees at little or no cost. Employers implement welfare measures for their employees apart from monetary benefits. This includes group term insurance to provide risk coverage for their employees.

If you are an employer, how do you ensure that you have chosen the right group term insurance for your employees? This article will help you out!

As the title indicates, a group term insurance is an insurance policy that covers a group of people under one single policy. The policy is a pure risk coverage that pays a death benefit (a fixed sum) to the nominee in case the policyholder dies during the policy term.

You, as an employer, can offer a group term insurance plan to your employees as a welfare measure. It acts as a financial cushion for their family, making them feel valued and protected.

To choose the right group term insurance for your employees, look for these features -

1.Comprehensive coverage

Initially, companies preferred plans with basic coverage as they offer cumulative risk coverage for the entire group. But recent times have brought a change in that notion. Employers have understood that their employees face a lot of challenges like recession, increase in retail and medical inflation, high work pressure, etc. So, they want to offer more than just basic coverage and have started providing extensive coverage.

Many employees depend on employer-given group term insurance policies as they do not have the capacity to buy individual term insurance. In such cases, your responsibility only elevates to provide adequate group term insurance coverage as an added welfare measure.

2.Coverage death, illnesses, and disabilities

When buying term insurance, the employee’s family gets financial security in case the policyholder pass away. Sadly, death isn’t the only risk they are exposed to, there can be an off-chance that they contract an illness or undergo a disability.

Such conditions can be covered by adding riders to the policy. Riders are basically add-ons that can be added to the policy. They enhance the coverage of the base plan at a certain additional cost.

For instance,

• A critical illness rider can be added for covering serious diseases and illnesses. The rider will offer an additional payout if the employee is diagnosed with a disease listed in the policy document.


• An accidental disability benefit rider can help your employee get risk coverage from any disability happening from the accident.

So, you can look for plans that offer riders - to maximise their coverage.

3.Being updated and adopting new technologies

Work-life has changed drastically around every nook and corner of the world. Nowadays, company meetings, discussions, and reviews all happen online. Both employers and employees can make use of technology and digital innovation to help overcome the one-size-fits-all approach to insurance. With the help of online platforms, you can easily have a look at the various features and benefits of the plans in the market - to make the right choice.

That is pretty much everything you should know about picking the right group term insurance policy for your employees. We hope you can make an apt decision that is helpful to everyone.