This product provides only term insurance cover, thus satisfy the insurance need of persons, who are unable to save enough for getting themselves covered through individual insurance plans. Term Insurance means that sum assured shall be payable to nominee only on death of member during continued membership of the group and currency of the policy. Through group term insurance, adequate cover, say 7 times of annual income, is possible with an outlay of just about 3% to 5% of annual income.
When employees/ members are adequately insured, the sense of security enhances their confidence, hence in turn their productivity. A little initiative from employer/ group in this aspect shall send a signal to the employees/ members that their employer/ group cares for them. This shall generate extra goodwill and confidence amongst the employees/ members in favor of the employer/ group. Establishments eligible to purchase this scheme: All establishments/ groups, where at least 50 people are employed/ members, are eligible to participate in the scheme.
(Illustrative)
Group Policyholder may choose cover pattern according to his choice of sum assured and/or cost.
| Group size |
Sum assured. (Rs.) |
| 50-99 |
1 lac |
| 100-199 |
2 lacs |
| 200 and more |
5 lacs |
| Designation |
Sum assured. (Rs.) |
| Senior managers |
5 lacs |
| Middle management |
3 lacs |
| Clerical & supervisory. |
2 lacs |
| Subordinate staff. |
1 lac |
Other cover patterns may also be designed according to specific requirement of the group.
Entire yearly premium in advance in one lump sum may be paid either by group policyholder or members. Group policyholder or members may share the premium in agreed proportion amongst them. For example group policyholder
may pay 30% of total premium and balance 70% may be paid by members but Entire total yearly premium in one lump sum will be routed through group policyholder only.
The premium shall not participate in the profits of Sahara Life, as it is a non-participating (without profit) scheme.
In case of discontinuation of premium, there will be grace period of 30 days for payment of annual renewal premium. If premiums are not paid within the grace period, the policy shall lapse and stand terminated with effect from the date of first unpaid premium and no benefit shall be payable thereunder. It shall not have any cash value on termination. Group is advised to satisfy itself that this scheme best serves its needs and it can afford premium payable under the policy.
As a result of significant saving in expenses, in comparison to individual insurance, cost of term insurance is very minimal. (For example a single proposal form is to be filled by employer and a single group policy is issued to Group Policyholder).
| Minimum group Size |
50 members |
| Minimum entry age |
18 years complete |
| Maximum entry age |
64 Years nearer birthday |
| Minimum Sum Assured |
10,000 |
| Maximum Sum Assured |
500,000 |
| Maximum Maturity age |
65 Years nearer birthday |
| Term |
1 Year |
Insurance up to the limits stated in the table below will be offered without any evidence of insurability
| Group Size |
Without evidence Limits |
Maximum Limit(Rs) |
| 50 to 99 |
2.5 * Average Sum Assured |
2,50,000 |
| 100 to 499 |
3.0 * Average Sum Assured |
3,00,000 |
| 500 to 999 |
4.0* Average Sum Assured |
4,00,000 |
| 1000 and above |
5.0 * Average Sum Assured |
5,00,000 |
| Age |
30Years |
35 Years |
40 Years |
45 Years |
Total |
| Occupation |
Executive |
Executive |
Executive |
Executive |
|
| Institution |
Bank |
Bank |
Bank |
Bank |
|
| Sum assured |
100,000 |
100,000 |
100,000 |
100,000 |
|
| Number of members |
10 |
15 |
15 |
10 |
50 |
| Yearly Premium per 1000 Sum Assured |
Rs 1.82 |
Rs 2.06 |
Rs 2.79 |
Rs 3.95 |
|
| Yearly Premium per 1,00,000 Sum Assured |
Rs 182 |
Rs 206 |
Rs 279 |
Rs 395 |
|
| Total Premium |
Rs 1820 |
Rs 3090 |
Rs 4185 |
Rs 3950 |
Rs 13045 |
| Total Sum assured |
1000000 |
1500000 |
1500000 |
1000000 |
5000000 |
| Average Premium for the Group |
|
|
|
|
2.61 per
thousand |
Premium for all the employees will be added and total premium will be charged from the group policy holder. Uniform premium per thousand sum assured (In this case Rs 2.61 per thousand Sum Assured) will be charged for each member of the group.
Insurance is valuable particularly for young employees/ members. All employees/ members shall appreciate insurance.
As the cost works out to be very low, it is therefore felt that employer/ group as well as employees/members both shall find it hard to resist such an attractive solicitation. |
