What are the Additional Covers You Should Avail with the Group Term Plan?

In today’s highly competitive world, because the world-class technology is easily available to every organisation, it is mainly people who differentiate the good from the best. Apart from employees, your organisation constitutes customers as well that hold immense value to you. One of their prime concerns is the security of their families. Being an organization of high repute and morale, would you like to share their concern by providing them with a concrete solution? If yes, then group term life insurance is an apt plan for you.

Intended to offer monetary benefits to the family, a group term life insurance policy pays a lump sum amount in case of demise of the insured member. No matter what is the area of your work, the kind of value that every member brings to your group can’t be underrated. A group term plan is the right way to show that you care for them!

Now when you have bought the right group term insurance plan or at least understood its importance, enhance the protection with the following additional covers: –

1. Voluntary cover for employees’ spouse: By paying an extra premium, you can extend your group term cover to insure spouses of group members. It is a useful feature, especially if the spouse is working.
2. Accidental Death Benefit: This rider ensures that in case of accidental death of the member, his/her nominee gets an extra benefit over and above the basic cover. As the incidences of accidents have increased in the country, it makes complete sense to go with this rider which offers double protection to the family in case of accidental death of the insured.
3. Accidental Disability Benefit: Accidents may not always result in death but may leave the policyholder disabled. A basic group term insurance will offer coverage only if there is a death, however, if you have this rider attached to your insurance policy, the insurer will pay a certain portion of sum assured in case of accidental disability as well. In case of some insurers, this rider becomes active even if there is a partial disability, like loss of one limb, arm, or finger, etc.
4. Critical Illness Benefit: Known by various names like dreaded disease rider, major surgical assistance rider, etc.; this rider offers an additional coverage in case the insured is diagnosed with a critical ailment like cancer, kidney/renal failure, heart attack, paralysis, etc. Once the payout is made, the death benefit of the member’s policy will cut to the extent of that amount.
   
   Unfortunately, there has been a rise in the cases of critical ailments among youngsters. Take this—in 2016, the number of youngsters who have cancer, under 30 years, increased from 0.5% to 0.8%. If you offer this benefit to members of your group, the insurer will make a lump sum payment in case any of the members is diagnosed with a critical ailment.
5. Daily Task Benefit: If the member of your group is unable to perform certain activities like speaking, hearing, walking, bending, standing up, etc.; the insurer pays daily task benefit. Once the payment is made, the member’s benefit will cease to exist and the death benefit for the member will also reduce to the extent of payout already made.
6. Terminal Illness Benefit: This rider pays 100% sum assured to the insured following the diagnosis of a terminal illness, which is a non-correctable medical condition in which the member’s life expectancy is below six months. Once the insurer settles the terminal illness claim, the death benefit for the member will cut to the extent of the payout.

A Word of Caution

Even if you decide not to add extra covers to your basic term insurance policy, the policy features are always there and your members will get the basic sum assured in case of death. The addition of these riders has nothing to do with the benefits of the main term insurance policy.

If you already have a group term life insurance cover, you can expand the cover by adding the above riders. Moreover, any new member will be covered from the date of joining or intimation to the policyholder. Also, you would have to pay an extra (but nominal) premium to get the above coverages. So carefully read about every rider before including in the cover. Also, compare the term insurance rider costs of different insurers before taking a final call. You can take the help of corporate advisors like SecureNow in comparing and choosing the right group term life insurance policy and rider for your group.

Remember, the objective of a group term life insurance policy is to offer complete financial security to members and their families. And by adding riders, you can give a heartening reassurance of care to your members and their families— a complete reassurance of a financial security and a peace of mind.