Group Life Insurance: Coverage, Claim & Renewal

Life Insurance: Coverage, Claim & Renewal

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Life insurance provides coverage against various life risks. It allows you to safeguard your family’s financial future against unforeseen incidents like death, accident, or terminal illness. Having life insurance can help you breathe a sigh of relief, knowing that your family has sufficient protection if something happens to you in the future. Similarly, many employers offer group life insurance cover to protect their interests and win their employee’s loyalty.

What is group life insurance?

A group life insurance policy is a type of life insurance plan that organisations offer to the employees as part of the employee benefits program. Like a standard life insurance policy, group life insurance provides financial protection to the employees and their families against unfortunate events.

What does group life insurance cover?

While the premium for group life insurance is quite affordable, such plans offer limited or defined coverage to the employees. The coverage terms vary from insurer to insurer, and it may also depend on the plan that the organisation chooses. But, generally, most group life insurance plans provide coverage against terminal illnesses and death. The list of terminal illnesses covered under the policy may differ for different plans.

What is the process for filing a claim under group insurance?

As an employee, when you fill the application for group life insurance, you must provide nominee details in your form. You must clearly define the nominee’s name, your relationship with them, their age, etc. This is vital to avoid any confusion during the claim process.

In the event of your untimely demise, the nominee or beneficiary can file a claim to get the policy benefits. However, the nominee must carefully follow the claim request process to avoid delay. Here is the process for your reference:

  • First and foremost, the nominee must inform the insurance company about the insured member’s demise within 24 hours or as soon as possible.
  • The nominee must comply with the documentation and submit necessary documents like a copy of the death certificate, the insurance plan.
  • After the nominee submits the necessary documents, the insurance company will verify the papers and settle the claim as per the policy terms and conditions.

  How much time does it take for claim settlement?

After receiving the claim request and the necessary documents from the nominee, the insurance company will connect with TPA (Third Party Administrator) and appoint a surveyor to verify the claim.

Once the surveyor is satisfied with the claim, they will submit an approval report to the insurance company. The insurer will then transfer the sum assured amount to the beneficiary through the organisation. The whole process usually takes about 7-10 days after raising the claim request.

How to renew a group life insurance policy?

Generally, the group life insurance policies are renewable after one year. As an employee, you need not worry about renewing the policy; employers take care of it. However, some organisations may give you the option to increase the coverage amount during renewal voluntarily. In such cases, you may have to bear the additional premium from your pocket; the employer may reduce the increased premium amount from your salary.

Also, during the renewal process, the employer (policyholder) can add or remove members from the policy.

Final Word

Group life insurance policy offers a win-win situation for both employees and employers. Employees get life insurance cover at an affordable price, and employers get employees’ loyalty.

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