Clarification regarding Group Term Life Insurance Benefits

Clarification regarding Group Term Life Insurance Benefits

• The Group Term Insurance is kind of Life insurance whereby the Employer arranges the Group Life insurance of his employees through an Insurance company by paying the Insurance premium, whether from his pocket or by collecting the premium from the employees. Similarly, in case of death of the insured employee, his death claim is paid to the Employer for onward payment to the employees’ family / legal heirs. This Group Life Insurance is Term Insurance and is renewed every year by paying the Premium by the Employer. For this Group Term Life Insurance, a Master Policy Agreement is signed between the Employer and the Insurance Company. There is no any direct contract between the insured employee and the Insurance company during this whole process.

• In the Master Policy Agreement, it is clearly mentioned that under this Group Term Life Insurance arrangement, the Insurance benefit is payable only in case of death of the employee during his service or within the agreed specified period after retirement, and that it does not have any bonus / maturity / surrender value / benefit payable at or after the retirement.

• In case of death of the employee, the legal heirs of that employee get its benefit through the Employer in shape of death claim (sum assured) agreed between the parties (ie) the Insurance Company and the Employer. From this it is very much clear that no any premium amount is directly received by SLIC from any individual employee(s) of the respective government / commercial institutions.

• The benefits of Group Term Life Insurance are clarified in the light of propaganda circulating on various social media regarding the refund of Group Term Life Insurance premium at the time of retirement to the retired employees (ie) no any other benefit except mentioned above is payable under Group Term Life Insurance Policy.