One of the most common worries for salaried individuals the world over is financial security. In India, organizations have started to acknowledge 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 region according to a 2014 Staying @ Work Survey Report conducted by Towers Watson, a global professional services 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 through which they are able to make a significant 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 relatively expensive individual life insurance policy covers that come with a higher premium amount.
How do Employees Benefit from Group Life Insurance?
- The premium cost is not individually risk-based i.e. the premium would remain 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.