Group Life Insurance Policy Vs Regular Insurance Policy. Which Is Better?
In this competitive era, every person runs towards success, which may end up with financial loses, even life. Only the insurance contract is the gateway to get back the loss. The birth of the first Indian life insurance company was in the year 1870. Since that time, it has been appreciated by the users as it offers mental relaxation and financial assistance. Might be, you are already an insured person with the regular insurance policy plan. Did you ever try other insurance plans? Might be, nope. Let's try a group life insurance policy that is also an insurance policy but is somehow different from the regular one.
What is the difference between group life insurance policy versus the regular Life Insurance policy?
About Regular Insurance Policy
A regular life insurance policy is a settlement between the insurance company with the clients where insurer gives a guarantee to the insured person to compensate for the loss of his life in return for payment of particular premium. The person whose name, has written in the agreement will receive the specific sum from the insurance company in the case if the insuree becomes dead.
About Group Life Insurance
As the name depicts, it is valid for a group of persons. Group insurance is a type of insurance plan in which some members or employees are getting insured under a single master insurance policy. To grab a group life insurance policy, there should be a group which may be any.
To clarify this statement thoroughly, let's differentiate the both terms below:
- A regular insurance plan is valid for a single person only while for a group insurance plan, there should be a group only, which may consist of doctors, teachers, members of cooperative banks, lawyers, etc.
- In the case of regular life insurance, the entire premium should be paid by only that person who has insured accordingly the documentation while in group insurance, the entire members of a group should pay the premium. No single person is eligible to pay the whole premium.
- Life Insurance plan is expensive than group insurance that is not permissible even by the middle class families.
- Those people who are considered uninsurable under regular insurance plan can get enrolled in group insurance group insurance.
- The number of premiums paid through the group superannuation method will get returned to the employees or a group of people during the retirement period. This option is not valid in case of regular Life Insurance as only the insured amount pays if the insuree gets dead. In the above example, if the insuree of the group insurance gets dead, then the amount will be paid to his or her family member.
- Employer or business owners can take this plan for their employees. This will be the motivating factors for the employees as the amount paid by the employer on behalf of their employees, will give them the job and financial support. In this case, employers can also offer this amount as their retirement benefits.
Conclusion
Both insurances plan all the best, but accordingly, the needs of the user. If you have never considered getting insurance with other people, regular life insurance plan is worthy for you while if you think that you are unable to pay a significant amount of premium every year or month as the case may be, then the group life insurance plan will be the best for you.
When you want to choose the best one only, you must go with group life insurance as you have to pay a minimum insurance premium along with getting guaranteed that your amount will come back to you either during the maturity of the policy or once you died, then to your family member.