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HDFC-Standard Life launches group term product

BS Banking Bureau

HDFC-Standard Life Insurance Company which launched its group term product on Wednesday, is among the first private sector life insurer to introduce a group product specifically aimed at meeting the needs of the corporate sector with regards to covering their employees under a single umbrella life insurance scheme.

Contrary to sales of other products, HDFC-Standard Life will market this policy solely through its staff employees, and not through its agency force.

HDFC-Standard Life's officials explained that the need is to develop relationship with corporates in terms of catering to their total needs in the area of annuity, gratuity and annuation, "We are selling a relationship that has to be invested in," he added.

The flexibility offered on the product reflects the feedback received from the corporate sector. The product is in the form of a one-year renewal plan, as opposed to most other similar products, which have a five to 10 years time frame. A corporate thus does not need to lock in its funds and get into any long-term commitment.

As size of the corporate group could vary, the plan allows the employer to add or decrease the number of employees within the group within the policy period, and correspondingly adjusts the premium.

Further, the sum assured is not necessarily flat across the group, but can vary in keeping with one's destination and salary, as well as size of outstanding loans. There is also no cap on the sum assured, which can exceed Rs 10 million.

The group term product can be used by an employer for multiple uses including providing life insurance cover to its employees and also for covering the housing/vehicle loans given to employees.

It can also be taken by professional associations like journalist associations and doctor associations. Other creditor/debtor groups like credit card companies can also use this product.

Speaking at the launch of the product and inauguration of HDFC Standard Life's Pune operations, Deepak Satwalekar, managing director and CEO, said: "Just like our retail insurance products, this group insurance product is highly customisable. It offers five levels of customisation including size of group, amount of cover and premium sharing ratio between employer/employee".

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