As an HR of an IT company, I am planning to introduce a Group Life Insurance policy for all employees. Currently, our company has been offering Group Mediclaim Policy for all existing employees. Now we are planning to add one more employee benefit in our bucket of offerings for an employee.
I am in the process of reviewing two options (either of the two)-
1) Group Term Life insurance for all- this provides coverage to the policyholder against death.
2) Group Personal Accidental Insurance- this provides policyholder coverage against death and disablement(permanent, total, partial) due to any accident.
Can anyone please guide me which option would be better and why?
Which all companies have these policies for their employees?
Thanks in advance.
From India, Calcutta
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Director - Hr Solutions
Dr. Vikas V.
Factory Medical Officer (snr. Manager)
DEEPAK_K_GUPTADear Ms. Shilpi,
Group Term Insurance Scheme is meant to provide life insurance protection to groups of people. Scheme offers covers only on death and there is no maturity value at the end of the term. This policy cover Death due to Natural/disease and accident and is being offered by Life Insurance companies only.
Where as Group Personal Accident Policy (GPA) is being provided by General Insurance co's. It covers risk only due to accident.
General Practice of corporate sector is to provide GPA policy as it is less costly and huge sum assured can be given to the insured person at nominal cost. In this policy you can cover Death , Permanent / Partial disablement and also by giving extra premium you can include payment towards cost of medical expenses and loss of pay to employee in case he/she remain absent from work due to accident.
I am an insurance consultant with a huge clientele .
I can structure your group insurance policies and also rework existing or expiring policies.
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I work for following co's. :
LIFE INSURANCE CORP.OF INDIA
NATIONAL INS. CO. LTD.
ORIENTAL INS.CO. LTD.
NEW INDIA ASS.CO.LTD.
UNITED INDIA INS. CO. LTD.
ICICI LOMBARD GIC LTD.
HDFC ERGO GIC LTD.
BHARTI AXA GIC LTD.
TATA AIG GIC LTD.
APOLLO MUNICH HEALTH INS. CO, LTD.
STAR HEALTH INS. CO, LTD.
MAX BUPA HEALTH INS. CO, LTD.
AND OTHER LEADING INSURERS
From India, Delhi
kishorkulkarniWhat I suggest a little that with a little extra premium, you can also cover family members in the insurance shell such as medi-claim, which you can certainly offer, may be on a sharing basis.
From India, Kolhapur
snsitaramI think whatever policy you provide whether LI or GPA see how many employees are already having such policy / policies personallly and how many get benefitted out of it. As one of our freiend suggests GPA is cost effective and most of them do not have. Besides if you have a budget for this benefit, you may enhance Meidiclaim with floater policy.
From India, Hyderabad
Dr. Vikas V.Dear Ms. Shilpi
In fact you can provide all 3 of them without hitting your budget to a huge extend. Correct me if I'm wrong but I think Group Mediclaim & GPA can be clubbed together with a very small amount of extra money.
Group Mediclaim helps you to remain alive through medical treatment.
GPA not only helps your family in case of accidental death but also in cases of disability and the loss of earning in a proprtion while one was being treated for the accidents. This helps one again, when alive.
Group Term Insurance Scheme is meant to provide life insurance and helps one's "Family" after the death of "Insured", when they not only suffer a personal & emotional loss but even monitory loss, if the person is earning prior to death.
Hence if your management and budget allows, go for all 3 of them and give a whole coverage to your employees - a Great Welfare to them.
Thanks & Warm regards
You can cover both also, Insurance company call it as GLPA (Group Life Personal Accident cover) with that exployee protected totally. Please check with them, generally it covers below benefits;
Death due to any cause
Additional Accidental Death Benefit
Permanent Total Disability Accident & Sickness Own or Similar Occ.Def.12 months
Permanent Partial Disability Accident & Sickness as per continental scale of benefits
Temporary Total Disability - Accident Nil Day waiting / 52 weeks / 100% actual weekly basic salary
Temporary Total Disability - Sickness 7 Days waiting / 52 weeks / 100% actual weekly basic salary
From Bahrain, Manama
pon1965Whether the company covers the employee for insurance or not, I would suggest the individuals to get their life insured for the future of the kith & kin. Term plans are at attractive prices starting from the premium of 6700/- p.a. for the coverage of upto 100 Lacs.
From India, Lucknow
Dr. Vikas V.Hi,
I agree with you Pon. In fact, as Factory Medical Officer, this is exactly I keep suggesting to my internal client within the plant with a little difference.
Our company has covered all of us under Group Mediclaim with a variation according to position. But with rising cost of treatments and a rise in "Life Style Diseases" e.g. High BP, Heart ailments, Diabetes and Cancers etc. Many a times the coverage provided by companies are not enough. Hence I always advise my employees and others, if you can, first go for a personal Mediclaim and keep increasing it with age. Because it helps you to remain alive and then Life Insurance which helps the family after death. But there is a warning - Most people are presented by agents the "Money back" policies or some investment plans clubbed with a small amount of Life insurance and people also prefer it". Because Term plan do not give you any returns before death.
One must understand that "Insurance is not an Investment Portfolio". There are better options of Investment portfolios available in the market. "Insurance" is not an Investment portfolio and one should go for "Life Coverage which pays a higher amount after Death", even if it does not give any returns while alive.
I hope I'm clear.
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From India, Mumbai
rajkanwar321Mostly people follow GPA as compared to others since the premiums are less and benefits are more. You need to decide what suits you best. I would suggest speaking to an unbiased financial adviser for best advice. I personally have a very good experience with Bharti AXA Life. Their premiums are reasonable and they have host of plans that caters individual needs. For more information your can check here - https://www.bharti-axalife.com/
From India, Bombay