Group term life insurance is a type of term life insurance policy which is offered to a group of members. The policy is usually valid for a period of one year after which it has to be renewed. The renewal can be done with any insurance company as there would be no benefits associated with the term life insurance policy which you would be losing if you chose to renew with another Insurer. Here are the 5 simple steps to follow when buying a group term life insurance policy.
Step 1: Choosing Intermediary – The first and foremost thing is to choose the intermediary carefully. There are many insurance intermediaries such as individual agents, banks, online portals, Insurance brokers etc. Insurance intermediaries play an important role in the insurance purchase decision. The insurance intermediary would advise the customer on the type of the plan, coverage required, premium etc. Insurance brokers such as Ethika insurance broking go one step ahead to provide value added services such as Employee engagement, employee wellness programs and red-carpet claim settlement program which would not be provided by any other insurance intermediary.
Step 2: Comparing plans – The next step is to compare the group term life insurance plans fr different insurers. If you go with an insurance broker then they would provide you with comparison from different insurance companies
An apple to apple comparison should be made while selecting the group term insurance policy. This helps in selecting the best group term life insurance policy.
Step 3: Stating requirements – The other thing to do is to state your requirements to the insurance intermediary. Once the requirements are stated the insurance intermediary would work on your requirements to select the best group term life insurance policy. It is important to state the requirements clearly as the coverage cannot be changed during the policy period.
Step 4: Negotiation on premium and coverage – The next step in the process is to negotiate with the insurance company on the premium and the coverage. If you go with an insurance broker the negotiation on premium and coverage would be done by them with the insurance company. Insurance brokers are the best negotiators in the insurance market and have good negotiation skills which would be useful to reduce the premium or increase the coverage. The premium negotiation should be done only after the insurance company is fixed and you are satisfied with the coverage.
Step 5: Making safe purchase – The last step in the group term life insurance buying process is to make the safe purchase. The safe purchase can be done by transferring the amount online or giving cheque to the intermediary. It is not advisable to deal with online websites that are not registered with the Insurance Regulatory & Development Authority of India. Once the premium is paid the insurance company would provide you with a receipt of premium and the same can be used to quote in future in case of any discrepancies. The group term life insurance policy would be generated within 1-2 days and shared with the customer.