Group Term Life Benefits
from Zoom Insurance
As the name suggests, group term life benefits means providing life insurance coverage to people belonging to a homogeneous group, be it employees of a company or members of an organisation formed for a specific purpose, such as loan customers of a bank or NBFC or members of a professional / social organisation, etc.
Group term life insurance is a product that has distinct connotations to each kind of group:
Employers: this is an excellent tool to offer a sense of financial security to the family of the employee. Most corporates provide a life insurance cover to their employees for a multiple of salary. This ensures that the employee’s family has financial assistance in case of unfortunate death of the employee
Lenders: One of the causes of NPA for lenders is the demise of the borrowers. Group term life insurance protects lenders from this loss as well as the family of the borrowers. Group life insurance policies are available that cover borrowers to the extent of the loan amount. The policy is assigned to the lender to the extent of the outstanding loan. This ensures that in case of an unfortunate event, the lender is able to recover its loan without causing any financial stress to the deceased borrowers family. The differential between the cover and loan is paid to the nominee
Affinity: Social or professional organisations can use the group term life benefits as a means to provide financial protection for the family of the members.
