“No one can surely predict the future. But we can surely protect it.”
Many organization as a measure of good employee practice provides financial protection to the family upon a death of an employee by taking a Group Term Life Insurance.
In case of an unfortunate event, the member’s loved ones will receive a lump sum amount to ensure their financial security.
How does this plan work?
This plan is offered through a Master Policy that is issued to the organization.
As the Master Policyholder or the group administrator, the organization decides the sum assured and accordingly chooses to pay complete or share of the premium that covers the members of your group.
The members of your group are covered for a period of one year.
What is the Ideal Sum Assured (Insurance Cover)?
The organization can choose the insurance cover/sum assured amount to be provided to each employee, following are the ideal practices followed by various organizations;
Linked to Salary : Multiples of Annual CTC of the respective employee can be offered as sum assured, Normal practice being 2 to 3 times of Annual CTC
Graded : Different individuals are offered different Life Cover on the basis of pre-decided grades/designation
Flat Cover : Equal sum assured to every employee, irrespective of their designation or salary band
The amount of life cover can be enhanced in case of accidental death or death due to critical illness.
The cover is available for 24*7 worldwide and waives off medical test requirement as well.
The policy is suitable not only for employee+employer relationship, but organizations can also extend the policy to non-employer+non-employee relationship (Affinity) i.e. for their customers, patrons, members and /or associates.