Language

Call us

/content/dam/tataaialifeinsurancecompanylimited/navigations/new-call-us/Close.png

starFOR EXISTING POLICY

Have query on premium, payout or any servicing need?

Dedicated NRI Helpdesk:

Call Icon +91 22 6251 9966

Monday - Saturday | 10 am - 7 pm IST
Call charges apply

Plus IconFOR NEW POLICY

Want to buy a new policy online?

For Indian Residents

Call Icon +91 22 6984 9300

Give missed call for a call back:

Call Icon +91 11 6615 8748

Monday - Sunday | 8 am - 11 pm IST

Exclusively for NRIs

Initiate Internet Call

Data charges may apply

Give missed call for a call back:

call +91 11 4473 0242

Available All Days | 24 x 7

Back Arrow Icon
Close Button
Back Arrow Icon
Close Button

Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

+91 dropdown arrow

Select Plan dropdown arrow
  • Term plans
  • Saving plans
  • Wealth plans
  • Retirement plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in. T&C apply.

Group Term Life Insurance & Individual Term Insurance: Know the Details

15-09-2022 |

In recent years, there has been an increase in the awareness of buying life insurance plans to protect the financial future of your loved ones. However, the varying needs of people have resulted in the launch of different types of life insurance plans. In this article, we will be talking about a group term life insurance policy offered by employers.
 

This will help you ascertain if the group life insurance offered by your employer is sufficient or if you need to buy an individual insurance policy.
 

Group Term Life Insurance Meaning
 

Many employers offer term life insurance policies to their employees as a perk or an incentive. These policies offer financial assistance to the family of every covered employee in case of an unforeseen event. In group term insurance policies, the employer is the owner with multiple employees insured under it. The employees are not required to undergo any medical tests. These plans are valid as long as the employee is working with the organisation.
 

What is Individual Term Insurance?
 

As an individual, you can purchase a term insurance policy to provide financial protection to your loved ones after you are gone. Since this is an individual plan, you can choose the tenor, coverage, and riders# based on your needs.
 

Group Term Life Insurance & Individual Term Life Insurance
 

Here are some facts about group life insurance and individual life insurance plans:
 

Aspect

Group Term Life Insurance

Individual Term Life Insurance

Coverage

The policyholder has no control over the coverage. The scope and extent of the coverage are ascertained by the employer.

The policyholder has complete control over the tenor and sum assured of the policy.

Validity of the plan

If you leave your job, then the group insurance policy ceases to be valid. While some insurers might allow you to port the policy, the premium could be more.

Individual term insurance plans stay active as long as you continue renewing them on time.

Customisability

You cannot customise a group term insurance plan.

You can customise an individual term insurance policy based on your requirements

Who can cancel the policy?

The employer can cancel the policy at any time due to any reason

You can cancel individual life insurance whenever you want

Tax* Benefits

Tax* benefits are not available under group term insurance plans

Individual life insurance plans offer tax* benefits



Some more details answered:-


When a company offers group insurance, it calculates the sum assured for individual policies based on the average risk calculation. Hence, it might not offer adequate coverage for your needs. If your employer is providing group insurance, then before choosing to buy an individual term insurance plan, make sure that you assess your insurance requirements.
 

While there are group-term life insurance benefits, there are certain disadvantages too.
 

You can look for suitable life insurance plans from Tata AIA Life insurance to secure yourself and your loved ones. Also, you can customise the policy as per your needs.
 

Conclusion
 

To summarise, both plans offer coverage and customisability. If your employer is offering group insurance, then you must go through the policy documents to understand the scope and extent of the coverage. This can help you assess if the policy is enough or if you need to save in an individual term insurance policy.

 

L&C/Advt/2022/Sep/2124

Get complete protection at affordable cost & tax benefits

+91 dropdown arrow
  • +93 Afghanistan

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.


 

Looking to buy a new insurance plan?

Our experts are happy to help you!

+91

Select plan
  • Term plans
  • Saving plans
  • Retirement plans
  • Wealth plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in

People Like You Also Read

Limited Pay vs Regular Pay Term Insurance Premium
Read More
6 Types of People Who Need Term Insurance
Read More
Term Plan and Comprehensive Plan: Understanding the Plans
Read More
Should You Purchase a Renewable Term Insurance Plan?
Read More
What is Direct Term Life Insurance? - Advantages And Features
Read More
Why Must You Pay the Term Plan Premium Till the Age of 60?
Read More
3 Options When Your Term Insurance Plan is Getting Expired
Read More
Types of Term Insurance Plans and How to Choose the Right One for You
Read More
Do You Get Money Back with Term Life Insurance?
Read More
How to Cancel a Life Insurance Policy
Read More

People Like You Also Read

Limited Pay vs Regular Pay Term Insurance Premium
Read More
6 Types of People Who Need Term Insurance
Read More
Term Plan and Comprehensive Plan: Understanding the Plans
Read More
Should You Purchase a Renewable Term Insurance Plan?
Read More
What is Direct Term Life Insurance? - Advantages And Features
Read More
Why Must You Pay the Term Plan Premium Till the Age of 60?
Read More
3 Options When Your Term Insurance Plan is Getting Expired
Read More
Types of Term Insurance Plans and How to Choose the Right One for You
Read More
Do You Get Money Back with Term Life Insurance?
Read More
How to Cancel a Life Insurance Policy
Read More
Website Logo Image Icon

Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance

Frequently Asked Questions

What is group term life insurance?

A group term life insurance policy is a single policy that offers coverage to a group of people. It offers compensation to the nominees of insured employees if something untoward was to happen to them. This is a single master contract in which the single group administrator manages the relationship between the employer and the insurance company. No individual underwriting is required.

Disclaimers

  •  Insurance cover is available under the product.
  •  The products are underwritten by Tata AIA Life Insurance Company Ltd.
  • The plans are not guaranteed issuance plans, and they will be subject to Company’s underwriting and acceptance.
  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and does not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
  • #Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch.