Eligibility Criteria for Group Life Insurance Policies

[Augusta]

With group life insurance policy comes with provision of affordable and efficient life insurance coverage for employees working in an establishment. So what are eligibility criteria for group Life Insurance Policies

The policy must be bought by non-employer-employee groups, Banks
Non-banking financial institutions,
Microfinance institutions and professional groups

it must be bought for for Large Group of People

This Is a group life insurance policy provides life cover protection to multiple individuals. So for eligibility the buyer must have some employees or people working with the company.The process of filling easy as the employer becomes the applicant and also the master policyholder.

Initial payment for the policy

For one to be eligible then , there should be an initial payment by the group administrator. The premium completed initially covers all life insured members under the group life insurance policy for one year from the date of the start of the group policy
Ability for renewal

Another eligibility is the ability of the group administrator to renew the policies. The group life insurance policies are annually renewed. Again , The members of the group have the option of choosing the sum assured maybe as a lump sum amount payout or be linked to a salary or loan account
What do you think?

 

[Knowlopedia]

The eligibility criteria for group life insurance policies specify what kind of group members are eligible for the policy and how long they have to become part of the group. The eligibility criteria may vary depending on whether the group is a tax exempt group or not. For example, there are different eligibility criteria for tax-exempt groups and non-tax-exempt groups.

The eligibility requirements for employees of a tax-exempt organization are different from those who work in non-tax exempt organizations because their benefits depend on other factors, such as how long an individual has been employed by the organization. There is also a difference in the time period that must pass before an individual becomes eligible to apply for coverage under certain circumstances.