• Term Life
  • Investment

Introduction of Termsurance Group Insurance Plan

IDBI Federal Termsurance Group Insurance Plan is a group term plan, designed especially for a wide variety of informal and formal groups like the employer-employee groups/ customer-supplier groups/ bank-depositor groups/ professionals and affinity groups. It is a Group pure Term Insurance plan that offers basic life insurance protection to the members mentioned in the plan. The benefit of life insurance provided to all the members of the plan is given in just one single policy document and is provided to the master policyholder. The master policyholder may differ for different groups. In the case the bank provides life insurance to its account holders, then the bank will be the master policyholder. In the case of the employer providing life insurance to its employees, the employer will be the holder of the policy document known as the master policyholder.

Features of Termsurance Group Insurance Plan

Employer – Employee group

For the Employer:

  • Group term insurance offers valuable life insurance cover to the employees.
  • Tax benefit on premiums as a business expense (as per Section 37 of the Income Tax Act, 1961).
  • Application process and administration process is very easy.
  • Helps the employer to attract and retain the most important asset of the company which is employees.

For the Employee

  • Employees get important life insurance coverage that will help family members in case of an eventuality.
  • Death benefit will be exempt from tax in the hands of the nominees.
  • No medical examination is required up to a certain limit.

Premium Payment

  • The group master policy holder is the care taker of the policy and is responsible for paying the premium to keep the policy active. If the policy has been taken on a voluntary basis, then members can contribute and pay their own premium according to their preferences.

Nomination

  • Every member can nominate their beneficiary to receive the death benefit, if the member dies within the policy term.

Benefits of IDBI Federal Termsurance Group Insurance Plan

Death Benefit

The policy offers life cover and if the policyholder dies, then the death benefit which is sum assured, will be paid to the nominee as per the rules in the policy document.

Accidental death benefit

The policy gives out the option to add accidental death benefit in the policy. In case the member of the group dies due to an accident, then the accidental death benefit subject to maximum limit of INR 50, 00,000 for each member will be paid out to the respective nominee over and above the death benefit amount.

Terminal Illness benefit

Terminal illness benefit is also available in the policy and the master policyholder needs to add the same at the time of buying of the policy. The amount for terminal illness can be selected and it should be less or equal to the sum insured with a maximum limit of INR 50, 00,000 for each member. The terminal illness amount will be paid out on the diagnosis of the terminal illness where the member is not expected to live beyond 6 months. The terminal illness amount will be part of the sum insured and on the death of the member, the death benefit payable will be minus the terminal illness benefit already paid. On diagnosis of terminal illness, no further premium is required to be paid for the particular member.

Eligibility Criteria

FactorsMinimumMaximum
Age of entry of members as per last birthday18 years for employer-employee group & accidental death benefit option.69 years
Age of entry of members as per last birthday15 years for other groups69 years
cover ceasing age in the plan as per last birthday19 years for employer-employee group & accidental death benefit option.70 years
cover ceasing age in the plan as per last birthday16 years for other groups70 years

Plan offered by Termsurance Group Insurance Plan

IDBI Federal Termsurance Group Insurance Plan offers affordable and comprehensive pure term life coverage to the members of the group. There is only one plan on selection, but it can be customised with addition of accidental death benefit and terminal illness benefit options at the onset of the plan. The plan can be purchased by the employer or other group members for offering key life insurance coverage and also enhancing the value of products and services offered to make them more competitive.

Other Details of Termsurance Group Insurance Plan

Surrender Value

The plan is a pure term insurance plan and the full premium is dedicated towards offering life insurance coverage only. The policy does not gain any surrender value anytime during the term of the policy.

Free Look period

The policy offers a free look period of 15 days for the master policyholder. If after buying the term insurance policy the policyholder is not satisfied with any of the features or terms of the policy, he/she can cancel the policy. The communication of cancellation needs to be done in writing within 15 days of the commencement of the policy with the objections or reasons for cancellation. The life insurance company will refund the premium after deducting premium for the number of days of cover provided, plus any other applicable taxes and expenses like stamp duty etc. Once the policy is ceased, all the benefits will stand nullified.

Grace Period

The policy has a grace period of 30 days (15 days in case of monthly premium paying mode) from the date of last premium due in regular premium payment mode. All the benefits of the policy will remain active in the grace period of the policy and claims made during the grace period will be paid by the life insurance company, but after deducting the premium which is due.

Reinstatement

The revival or reinstatement period of the policy is 3 months from the date when the policy lapses due to non-payment of premium due.

Exit of Insured member

If a member of the group exits the group, then the insurer will give two options to the master policyholder. The first will be a refund of the premium for unexpired period of risk of that particular member. The second option will continue to cover the member for the remaining policy term until the renewal date of the policy.

Good and Service Tax (GST)

Goods and service tax is to be payable in the life insurance policy premiums as per the applicable current tax laws of the country.

Product Details

Premium frequencyMonthlyQuarterly
Sum insured of the memberINR 5000No limit (As per understanding)
Accidental death sum insuredINR 5000INR 50 lakhs
Terminal illness sum insuredINR 5000INR 50 lakhs
Size of group50 membersNo limit
Policy termThis group insurance plan is to be renewed on yearly basis. The master policy will be renewed at the annual policy renewal date subject to the premium is received within the grace period by the insurer.

Premium detail

Premium Payment Frequency: The premium for the whole year (1 year) needs to be paid in advance at the commencement of the policy or policy yearly renewal date, as applicable. The other available premium payment options are- six months/three months or monthly payment modes. For premium frequencies other than yearly, the premium amount can be determined by multiplying the yearly premium with the frequency factor as mentioned in the table below:

Premium frequencyMonthlyQuarterlyHalf-yearly
Frequency factor 0.090.260.51

Document required

The following primary documents are required in support of a claim to enable processing of the claim. Although, in some cases, more documents may be asked by the Insurance Company to ensure there are no cases of fraudulent claims made in the policy. Intimation under the Policy:

For Death Benefit:

  • In case of unnatural Death - Certificate of the Doctor / Medical Officer certifying the cause of death; post mortem report, First Information Report, Inquest Report and the Final Investigation Report of the Police;
  • Death Certificate issued by the local authority or the authority authorized to issue the same under the Registration of Births and Deaths Act , 1969; and
  • Claimant’s statement in prescribed form
  • Photo Identity card of group member insured with age and address proof

For Terminal Illness

  • Original copies of Hospital Bills for the confinement & Copies of all related clinical Reports pertaining to terminal illness
  • Copy of Case Papers of the hospital admitted
  • Any summary of present and past hospitalizations
  • Photo Identity card of group member insured with age and address proof
  • Bank Details of the claimant – Cancelled cheque (with printed name and account number) / bank passbook and NEFT Form
  • Medical Test Certificate
  • All clinical Reports relating to the claim event Know more
  • Any consultation notes in relation to the insured present medical condition

For Accidental Death Benefit

  • Hospital treatment statement for death claim
  • Photo Identity card of group member insured with age and address proof
  • Post mortem report
  • Police inquest report
  • Panchanama
  • First Investigation Report
  • Copy of Driving License of the Insured (if the Insured was driving the vehicle)

Exclusions - Termsurance Group Insurance Plan

Exclusions for accidental death benefit

Accidental Death benefit shall not be paid on death of the insured member, occurring directly or indirectly, as a result of any of the following-

  • Intentional self – inflicted injury, suicide or attempted suicide, whether the member is sane or insane.
  • If the insured member is found under the influence of drugs, alcohol, narcotics or psychotropic substances unless taken in accordance with the legal prescriptions of a registered medical practitioner.
  • Failure to seek or follow medical advice of a registered Doctor.
  • Participation by the insured group member in any flying activity, except as a bonafide fare paying passenger of a standard commercial airline on regular route and on a scheduled time table.
  • Participation by the insured group member in a criminal or unlawful act with unlawful and criminal intent.
  • Any non-disclosed serious injury incurred before the effective date of the cover.
  • War (even if it is declared or not), war like activities, terrorism, invasion, civil war, revolution, insurrection, martial law, rebellion, military or usurped power.
  • The life insured participating in a riot, a strike, civil commotion or any criminal or unlawful activity.
  • Nuclear contamination, the radioactive, explosive or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accident arising from such exposure.

Exclusions for Terminal Illness benefit

Terminal Illness benefit shall not be paid in the event of any claim occurring directly or indirectly as a result of any of the following:

  • If the group members get Infection of Human Immunodeficiency Virus (HIV) or conditions due to any Acquired Immune Deficiency Syndrome (AIDS).
  • If group members are subject to self-destruction or any attempted self-destruction or self-inflicted injury while he/she is sane or insane.
  • If the group member participates in any illegal fight or affray.
  • If the group member indulges in racing of any kind other than on foot.
  • If the group member participates in scuba diving activity.
  • Accident occurring while or because the Insured group member was under the influence of alcohol or any non-prescribed drug.
  • Entering, exiting, operating, servicing, or being transported by any aerial device or conveyance, except when the Insured is on a standard commercial passenger airline on a regular scheduled passenger trip over its established passenger route.
  • Physical handicap or mental infirmity existing at the time of insurance application or revival of the Supplementary Contract.
  • Any kind of congenital anomalies.
  • Complications of surgical procedures or Accidents occurring during surgical or therapeutic procedures.
  • If the group member indulges in hunting, mountaineering or climbing requiring the use of ropes or guides.
  • Exposure to radiation or contamination by radioactivity from any nuclear fuel or nuclear waste.
  • If the group member is exposed to radioactive, toxic, explosive or other dangerous properties of any nuclear equipment or any part of the equipment.
  • Any underwater or subterranean operation or activity. These exclusions relate only to payments under the Terminal Illness benefit. If the insured group member subsequently dies while cover is active, then the death benefit will be paid out as normal.

Review of Termsurance Group Insurance Plan

IDBI Federal Termsurance Group Insurance Plan is a comprehensive pure group term insurance plan. The term insurance plan offers insured accidental and terminal illness cover with a limit of up to INR 50 lakhs per person in the group which is a good amount in present day. The life cover will take good care of the family members of the group member insured in the plan. There is no medical test required for the group members to get enrolled in this plan. The plan gives customisation option of adding accidental death benefit and terminal illnesses feature which makes this plan as good as a standalone term insurance plan.

The plan is ideal for employers who want to attract and retain employees by offering comprehensive financial security to their employees for very nominal rate of premium. The group term insurance plan can also be used to offer valuable complimentary service for the clients and customers. For example – banks offering group term insurance to its depositors etc. The design of the plan has been kept very simple to understand for the master policy holder and its group members. Overall, it is one of the best and holistic group term life insurance plans on offer in the Indian Insurance market.

FAQs of Termsurance Group Insurance Plan

What is the minimum age for enrolling in IDBI Federal Termsurance Group Insurance Plan?

The minimum age for enrolling in IDBI Federal Termsurance Group Insurance Plan is 18 years of age for the employer-employee group and 15 years for all other group types

What is the maximum age to enrol in IDBI Federal Termsurance Group Insurance Plan?

The maximum age to enrol in IDBI Federal Termsurance Group Insurance Plan is 69 years. The maximum age at the time of expiry of the policy is 70 years.

What is the term of a group term life insurance plan?

The term of a group term life insurance policy is 1 year and it needs to be renewed on a yearly basis.

What is the minimum sum that is assured under the IDBI Federal Termsurance Group Insurance scheme?

The minimum sum that is assured under the IDBI Federal Termsurance Group Insurance scheme is Rs.5,000. There is NO maximum limit subject to underwriting guidelines.

What are the different groups which are eligible to buy group term insurance plans?

The following are the groups who are eligible to buy group term insurance plans –

  • Employer-employee group
  • Banks
  • Non-banking financial institutions
  • Non employer- employee groups
  • Professional groups
  • Microfinance institutions

How does a Group Life Insurance scheme work?

Below is an explanatory flowchart of the working of group life insurance plan-

  • The policy holder chooses the sum insured of each member and any additional benefits like accidental death benefit, terminal illness benefit, etc.
  • Master policy is issued to a group administrator, also called the master policy holder, after he/she does the payment of initial premium.
  • The initial premium payment covers the group members for a period of one year.
  • Group term insurance plans are normally renewed on a yearly basis.
  • The premium in the group insurance plan changes as per the alternations in size and age of the group members.

What are the varieties offered in Group term insurance policy?

Following are some examples of varieties and features offered in group term insurance policy-

  • Some group term insurance plans may offer standard coverage to all of its members.
  • Some group term insurance plans may offer ranked coverage for various grades of members in the group.
  • Some group term insurance schemes also provide cover for outstanding housing loans, car loans, etc.
  • Some group term insurance schemes also have riders like critical/terminal illness benefits, accident benefits, disability benefits, etc. which can be added for an extra premium to the base plan.
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