Group term life helps tackle employee attrition by ensuring concern for employees’ health and well-being, and in turn, help them draw more new talent to their organization. It also boosts productivity by creating a stress-free work environment Better productivity assures bigger profits for the company. Lastly, it has Tax benefits for employer contribution. The employer or the organization can avail tax exemption for premium contributions toward the policy under u/s 37(1) of Income Tax Act 1961 as business expenses.
Apart from the many benefits of group term life to employees, employers are also aided with a systematic method of building up funds for their future gratuity liability towards the employees. A group insurance policy assists the employers with the same, along with providing life insurance cover to employees, with greater ease.
Also, Group Term Life Insurance plans offer tax benefits to both employers and employees. Death benefits to employees are exempt from tax under Section 10(10D) of the Income Tax Act. Moreover, group insurance plans are doubly effective - in employee welfare as well as retention.
Cost - Effective:
Since a group plan entails insurance cover for many people, its premium is much lower as compared to individual policies.
Worldwide Coverage:
Group Term Life Insurance policies offer worldwide coverage to policyholders. Even if the insured dies in a foreign land, the nominee is entitled to receive the policy payout benefits in India. Undoubtedly, a group insurance policy is a smarter way to avail insurance protection against multiple risk factors, let alone life. Start by assessing the right group plan.