With corporates employing a large workforce, it is a responsibility to look after themselves and the organization along with their employees and often their dependents and families. The past rounds of infection have established how dire the mortality rate due to the pandemic can be. While staying safe and protected is important, one must also be prepared for the worst.
Raghuveer Malik, BU Head – Corporate Insurance, Policybazaar.com, said that in the times of Covid, term insurance has come to the rescue of many. Term insurance, which is touted as the simplest and purest form of insurance, has gained momentum in adoption among large and small corporates alike. It helps companies create a wider safety net and makes employees feel safe and valued. “Group term insurance has become an essential component of the compensation package to ensure financial security for the dependents of the employees. Generally, most companies provide basic coverage to employees for free. In addition, employers give employees the option to add additional coverage, features, riders or benefits for an additional cost,” Malik said.
Here’s a round-up of features to look for in group term insurance for your employees during this time.
providing comprehensive coverage
As mentioned earlier, companies usually provide basic coverage as the policy is based on the cumulative risk of the group as a whole. However, the time we are living in is nothing like what we have seen before. The workforce across the country has faced many challenges – dealing with economic slowdown, low pay-checks, rising medical inflation, increased work and mental pressure, loss of life and finances among many others.
“In many cases, the earning member is the sole breadwinner of the family. The unfortunate death of an employee can ruin the future of the entire family. Plus, many people rely only on coverage provided by their employer – be it health or term insurance. Due to lack of awareness or affordability, they often do not opt for an individual policy. All these factors can become a disaster if they do not have adequate coverage for their dependents. Looking at these times, it is best to go the extra mile and provide adequate coverage in a group term insurance policy,” Malik said.
Focus on 3D – Death, Disease and Disability
Term insurance serves the sole purpose of providing financial assistance to the dependents in case of the death of the policyholder. Unfortunately, people face the risk of not only death during these times, but also uncertainties arising from long-term illness or permanent disability. Group term insurance policies are often not designed to cover the risk arising from all three. In such cases, riders come to the rescue of the policyholder. For example – Accidental Disability Benefit Rider provides additional cover to the insured in case of accidental disability. Similarly, the critical illness rider helps provide an additional source of income if the policyholder is diagnosed with a life-threatening condition such as heart attack, stroke, kidney related ailments or cancer.
Malik said, “Riders like Accidental Disability Benefit Rider, Critical Illness Rider etc. can be made available to the employees at a lower cost. What’s more, employers can help raise awareness of these riders among employees and encourage them to opt for them to their advantage.”
Adoption of technology: the need of the hour
Sanjeev Bajaj, Joint Chairman and MD, Bajaj Capital said that since the outbreak of COVID, remote working has become the new normal, taking away the employer-employee connection. In the world of social distancing, technology has come to the rescue of all industries. Corporate insurance is no exception. Adopting digital innovation can be of great help to employers and employees. The digitally automated process helps the employee and their family in distress and helps the company in faster and easier claim processing.”
Technology also helps to overcome the one-size-fits-all approach to workplaces regarding insurance. This is especially true for small and medium-sized firms, which have a high degree of control over customization and flexibility in policy based on the company’s demographics, Malik said.
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