Group Life Assurance Plan is designed to provide Death – In – Service benefit, which pays out in the event of the member’s death while still a member of the group.
The benefit or Sum Assured is usually fixed or related to a multiple of one’s annual salary.
The benefit is determined by the trustees or the Employer/Organisation because the cost (life cover premium) is borne by them as the case may be.
The most popular Group Life Policy is based on the Yearly Renewable Term (YRT) where the cost or premium for the year’s coverage is calculated. The premium is based on the individual’s age and the selected Sum assured.
The premium for the whole scheme is the sum of the individual premiums.
Members have to go for medical examination expect those whose sum assured fall above the free cover limit.
The plan has the following additional covers: –
- Last Expenses benefits
- Critical Illness benefits
- Total Permanent Disability