One of the most shared worries for salaried individuals the world over is financial security. In India, organizations have started to concede this global concern and are now increasingly investing in health and productivity endeavors. In fact, the focus of Indian employers on health and productivity was the highest in the Asia Pacific vicinity according to a 2014 Staying @ Work Survey Report conducted by Towers Watson, a global specialized sets company. In this survey, it was found that 48% of the companies operating in India already have a health and well-being strategy in place while almost 44% of the companies had plans to formulate such a strategy.
Group life insurance is turning out to be that potent strategical tool in the hands of Indian employers by which they are able to make a meaningful impact on the emotional well-being of their employees and thereby are having a direct and positive impact on their business health.
What is Group Life Insurance?
A group life insurance policy is a product offered to large entities by public and private insurers. Under such a policy cover, an organization retains the master insurance policy and extends the policy benefits to all its employees. This is an inexpensive insurance option that employees can avail in comparison to the comparatively expensive individual life insurance policy covers that come with a higher premium amount.
How do Employees assistance from Group Life Insurance?
- The premium cost is not individually risk-based i.e. the premium would keep uniform for all employees.
- The fact that administrative costs are borne only once by the master policy holder (employer) results in lesser premium amount per employee as compared to individual life insurance policies.
- There are no entry barriers for employees e.g. there is no need to provide medical certificates by employees to avail a group insurance policy.
- Most group insurance policies will provide the option of extending the benefits of insuring the employee’s family in addition, thereby providing a greater sense of relief to employees when it comes to concerns around the possible future financial instabilities that can impact the life of their family members.
- Some of these policy covers also provide gratuity benefits along with the life insurance cover that turns out to be an excellent saving option for the future.
Such a group life insurance policy is turning out to be advantageous to both the employer and the employees. With their financial insecurities taken care of, employers are bound to observe happy and more engaged employees.