What do you mean by Group Life Insurance ? Explain three main feature

1.	What do you mean by Group Life Insurance ? Explain three main features of Group Life Insurance.
Answer» Group Life Insurance is a scheme which provides insurance cover on the lives of several persons under one insurance policy. It is provided to all employees without any evidence of insurability. For the insurance company, cost of administration is low as only one policy is issued for several persons. In case of injury or death to an employee, the claim received by the employer is paid to the employee. The main features of Group Life Insurance are : 1. Group Life Insurance is basically a contract between the insurance company and employer. The policy issued to the employer is called master contract. 2. The amount of premium is payable at a flat rate without any regard of the age and salary of the employees. 3. It provides risk coverage to the employees as long as they remain in the service of the employer.

What do you mean by Group Life Insurance ? Explain three main features of Group Life Insurance.

Answer»

Group Life Insurance is a scheme which provides insurance cover on the lives of several persons under one insurance policy. It is provided to all employees without any evidence of insurability. For the insurance company, cost of administration is low as only one policy is issued for several persons. In case of injury or death to an employee, the claim received by the employer is paid to the employee.

The main features of Group Life Insurance are :

1. Group Life Insurance is basically a contract between the insurance company and employer. The policy issued to the employer is called master contract.

2. The amount of premium is payable at a flat rate without any regard of the age and salary of the employees.

3. It provides risk coverage to the employees as long as they remain in the service of the employer.

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