Our daily life revolves around interacting with a number of people, be it our friends, colleagues, or family. For groups, this interaction is pivotal, with their success or failure depending on how well the members perform. Performance of members on the other hand is linked to how secure they feel, with insurance often being an added incentive for them to stay with the organisation, which eventually reflects on their performance as well. The Group Term policy from Tata AIA is a non-linked, non-participating group scheme which can be renewed annually. It is designed for both, employer – employee, and non-employer – employee groups.
Groups looking to secure the life of their members through this plan should keep these basic eligibility criteria in mind.
|Parameters||Criteria for eligibility|
|Minimum age at entry||14 years|
|Maximum age at entry||84 years|
|Maximum age at maturity||85 years|
|Minimum group size||For employer - employee groups - 10 members For non-employer – employee groups – 50 members|
|Maximum group size||NA|
Sum Assured – A life insurance policy pays a certain amount if the policyholder passes away during the policy term. Being a group plan, there is no sum assured offered on maturity. Tata AIA has designed this plan in such a way that groups of different sizes and budgets can utilise the services provided by the product. The sum assured is paid to the nominee of an individual member if he/she passes away. It is to be noted that the values mentioned in the table are per member, and not the group as a whole.
|Minimum Sum Assured||Rs.5,000|
|Maximum Sum Assured||No upper limit|
Premium* - A master policyholder/head of group is expected to pay premiums towards the policy in order to avail the cover offered by the plan. This premium could either be adjusted with the salary of group members or could be paid solely by the master policyholder. The premium varies based on the number of members in a group, with it possible to get lower rates if there are more members in the group.
|Plan type||Group term insurance scheme|
|Term of the policy||1 year|
|Premium Payment Term||1 year|
|Premium Payment Mode||
|Minimum Monthly Premium Amount||NA|
|Maximum Monthly Premium Amount||Based on sum assured|
|Minimum Quarterly Premium Amount||NA|
|Maximum Quarterly Premium Amount||Based on sum assured|
|Minimum Half-yearly Premium Amount||NA|
|Maximum Half-yearly Premium Amount||Based on sum assured|
|Minimum Yearly Premium Amount||NA|
|Maximum Yearly Premium Amount||Based on sum assured|
*The premium paid depends on the entry age of member, number of members, sum assured chosen, etc.
This group plan is designed to provide life cover to members. As such, it is not an investment/savings plan, offering no returns on maturity.
|Death Benefit||If any member of a group insured under this plan passes away during the policy term, the insurer will pay the nominee a death sum assured. This sum is equal to the amount for which an individual is insured. The policy will continue to provide protection to other members in the group even after paying the death benefit for a particular member.|
|Maturity Benefit||This plan does not provide any benefit on maturity of the policy.|
An employer/head of group cannot enhance the cover offered under this plan by adding a rider to it.
The two exclusions under this policy are listed below:
Other Key Features
|Grace period||The master policyholder is provided a grace period of 30 days if he/she pays the premium either annually, bi-annually, or quarterly. If the premium is paid each month, the grace period is limited to 15 days.|
|Free look period||A policyholder can choose to return the policy if he/she does not agree with the terms and conditions of the plan. A 30 day period is provided if the policy was purchased through any distance marketing mode. This period is reduced to 15 days if the policy was purchased through other modes.|
|Revival||It is possible to revive a lapsed policy by paying all premiums and dues before the policy term ends. Revival is subject to approval by the company and is not guaranteed.|
|Surrender||Members of a surrendered policy can opt for individual cover.|
|Loan||There is no loan facility offered under this scheme.|
The master policyholder is eligible to save money on taxes when he/she pays the premium for this plan. The premiums paid can be claimed as tax deduction under Section 80C of the Income Tax Act. The quantum of permitted deduction depends on the current tax slabs, with Rs.1.5 lakh being the maximum amount for 2017-18.
Buying the Group Term Plan is a smart investment, even if there are no monetary returns on offer. Members of the group are protected, enabling them to perform their duties without having to worry about their loved ones in case of any eventuality. With regards to an employer/group head, the policy accords protection to members at affordable rates, with it possible to increase the number of people covered under the plan.
A master policyholder can choose to renew a policy if he/she is happy with it, with Tata AIA providing an option for yearly renewal. This helps build trust and confidence among all stakeholders. The biggest advantage of this plan is the insurer, with Tata AIA having a high reputation in the country. AIA is regarded as one of the leading insurers in the world, bringing modern solutions to the Indian market. The company has one of the highest claim settlement ratios in the country, which stood at 96.80% as of 2015-16. This in itself provides proof that the money invested in a life insurance policy is safe, with genuine claims cleared without hassles.
For companies which already manage huge resources, a hassle-free claim settlement process is a boon, making this policy extremely attractive.