Benefits of Group Insurance Plans

Sep 16, 2016 | 3 years ago | Read Time: 2 minutes | By iKnowledge Team

Benefits of Group Insurance Plans - Aegon Life

Group insurance policies are purchased by employers in order to cover employees of their companies which also includes professionals, cooperative societies and co-workers. Every organisation has a set of policies to facilitate the well-being of the employees. Group insurance policies serve the same purpose. It provides insurance cover to employees at relatively lower premiums to those for whom purchasing individual policies may be a tough deal. Majority of the group insurance policies provide the option of customising specific requirements of various groups that they are aimed at. These insurance policies are available to everyone within the group irrespective of their gender, profession, age, social background and other such factors.

There are a number of benefits offered by a group insurance policy:

Insurance Cover:

Such policies offer auto-cover to the employees simply because they qualify as a part of the company. This insurance is valid till the time they are a part of the company. This serves as a basic insurance cover for those who cannot afford an individual insurance cover otherwise.

Low Premium:

In comparison to other insurance plans, a group insurance cover provides relatively lower premium. It is therefore convenient for the employees to pay the premium and works in their favour. However, the premium is based on a certain number of factors such as average age group, professional hazards, etc.

Professional Fund Management:

In case of group annuity and gratuity, there are possibilities that in a particular year, the gratuity is higher leading to unpredictable drainage of funds. In such cases, seeking a professional fund management proves to be very beneficial. This also helps in churning larger returns for the employees.

Rider Options:

With a nominal supplementary payment, employees can take advantage of other benefits such as double accident benefit, loss of future payment, critical illness, etc. All of these are offered by most of the insurance companies. Such options are additional benefits that are provided to the employees similar to the private insurance policy benefits.

Ease of Payment:

Making the payment of the insurance is a hassle-free process when it comes to group insurance plan. This is because there is no delay in the premium payment as it is automatically deducted from the salary of the employee. This also ensures continuity of insurance cover until the employee works in the firm.

Employee Welfare:

A group insurance plan is not just a protection for the insured. It is also works as an employee welfare plan since it caters to a secure future of the insured and the family members. Besides, it also works as an employee retention plan for the company.

To know about AegonLife’s life insurance products like term insurance plans and other products like health insurance , visit our home page.

Calculate premium for your Term Plan

A Child’s Right to Education
Five Reasons why you must buy a term insurance plan!
Date of Birth
Annual Income
Sum Assured
Select Cover Upto Age
Full Name
Email ID
Your Monthly Premium for Aegon Life iTerm Insurance Plan


  • Sep 16, 2016
  • |
  • Read Time: 2 minutes

Section 80C, 80CCC & 80CCD Tax Deductions Explained

  • Sep 16, 2016
  • |
  • Read Time: 2 minutes

Tax Structure in India, Explained