Group Life Insurance: Features, Benefits, & Top 5 Policies in the UAE
Most of the businesses and enterprises out there offer their employees a group life insurance that helps in providing an employee’s family with financial security even if he or she is to be no longer around. It aims at offering monetary benefits to the nominees of the policy in the unfortunate event of the employee i.e., the policyholder’s demise.
What Is Group Life Insurance?
Group life insurance is a kind of life cover in which an entire group of people is covered under one single policy contract. Generally, the owner of the policy is the employer or an entity and the policy aims at covering the employees or the members of such a group. In many cases, a group life insurance policy is offered as a part of an employee’s benefits package. Also, mostly, the cost of such coverage is very less as compared to what the employees or the members would be paying for individual protection of similar amounts.
So, if your employer, or any other group, offers you a group life insurance policy, you should definitely take it, especially if you do not have any other type of life insurance coverage or even if your personal coverage is not sufficient for your family’s financial security.
As the owner of the policy, the entity or the employer keeps the actual insurance plan that is also known as the master contract. All those individuals that are covered under this contract receive an insurance certificate in the form of proof of the insurance but it is not the actual insurance policy. Just like the other life insurance policies, you can choose your nominee under a group life insurance plan.
Eligibility for Group Life Insurance
Group life insurance is provided to numerous categories of the working class such as employee-employer groups, professional groups, non-employee-employer groups, non-banking institutions, among others. The group life insurance eligibility criteria vary from one category to another, depending on the terms and conditions of the policy and the insurance provider. While some plans might just offer basic coverage, others might offer upgraded coverage depending on the professional ranking of the members or their positions.
Features of Group Life Insurance
The following are some general features of these policies. However, they can vary from one insurance provider and employer to another.
Generally, the minimum age for entry is 18 years and the maximum age can vary between 65 to 69 years.
Many of the group life insurance plans provide coverage to the employee for the basic salary along with any other compensation such as bonuses, etc. However, the coverage offered varies across the employers as well as the position of the employees in the organizational hierarchy.
Cost of Premium
The premium contributions are either made entirely by the employer or are shared with the employee. The amount is deducted from his or her salary during the tenure of employment. Most of the plans have set premium cost bands in which the charges increase with the age.
As the current employment offers this coverage, the cover is automatically terminated as soon as one leaves the current job.
Benefits of Group Life Insurance
The following are some of the benefits of opting for a group life insurance plan:
1. Default Coverage
The group life plans provide automatic coverage to anyone who is part of the group. Such a policy helps in ensuring the basic and minimum life coverage to those individuals that do not hold any life insurance policy.
2. Cover Limit
Irrespective of one’s health condition, the insurance coverage is provided to all of the members of the group. It provides a good value, especially to those people that belong to a high-risk category or those who might be facing difficulties while buying a decent coverage plan.
3. Worry-Free Premium Payments
The premium for such plans is directly deducted from the salary of the employee, so there is no chance of missing out on any premium payments. It also helps in reducing the probability of a policy lapse caused due to non-payment. Some employers might also offer the policy without any charges.
4. Easy Payment Options
Depending on the entity, the employee can opt for premium payments to be made on a monthly, quarterly, semi-annual, or annual basis depending on what suits them.
5. The wellbeing of an Employee
It helps in the wellbeing of the employee and it also helps in providing the employee’s family with a financial security if he or she is to be no longer around.
6. Extended Coverage with Add-ons
The scope of coverage can be expanded by adding on the optional riders provided by the group life insurance provider. The add-ons help in providing comprehensive coverage.
Since a group life insurance plan covers numerous individuals under one policy, the premium of such a plan is much lower as compared to the premiums of an individual coverage plan.
8. Global Coverage
Group life insurance policies offer coverage all across the globe.
Top 5 Group Life Insurance Policies in the UAE
The following are the top 5 group life insurance providers in the UAE:
- Group Life Insurance by National General Insurance (NGI)
- Group Life Insurance by Alliance Insurance
- Group Life and Disability Insurance by Metlife
- Group Life Insurance by Union Insurance
- Group Life Insurance Products by National Life & General Insurance (NLG)