- About Coverfox
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.
For the Employer:
For the Employee
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.
|Age of entry of members as per last birthday||18 years for employer-employee group & accidental death benefit option.||69 years|
|Age of entry of members as per last birthday||15 years for other groups||69 years|
|cover ceasing age in the plan as per last birthday||19 years for employer-employee group & accidental death benefit option.||70 years|
|cover ceasing age in the plan as per last birthday||16 years for other groups||70 years|
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.
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.
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.
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.
|Sum insured of the member||INR 5000||No limit (As per understanding)|
|Accidental death sum insured||INR 5000||INR 50 lakhs|
|Terminal illness sum insured||INR 5000||INR 50 lakhs|
|Size of group||50 members||No limit|
|Policy term||This 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 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:
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:
For Terminal Illness
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-
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:
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.
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 –
How does a Group Life Insurance scheme work?
Below is an explanatory flowchart of the working of group life insurance plan-
What are the varieties offered in Group term insurance policy?
Following are some examples of varieties and features offered in group term insurance policy-