Life insurance protection under group policies to various groups such as employer-employee, professionals, cooperatives, weaker sections of society, etc. are available. There are policies providing life insurance coverage to people at subsidised rates under social security schemes.
One can also find the schemes for employers, which provide funding of gratuity and pension liabilities to the employees.

Advantages of the Group life insurance schemes:

• Low premium
• Not many formalities or officialities and
• Easy administration through a single ‘Master Policy’ covering all. The premiums are based on age, combination of members, occupations, etc. Working conditions too are considered as an important factor

All the above mentioned policies are available in India. The LIC offers a big range of individual and group policies to cover every faculty of life.

Apart from LIC, there are other life insurance companies who cover most of these policies to a certain extent. Pakistan State Life does not cover the whole spectrum of insurance but, however, the kind of policies it carries is good enough to a large population.

There is a dire need to introduce new policies in the GCC countries where millions of workers from India, Pakistan, Bangladesh, Philippine, etc. are working in a hot desert climate. The working atmosphere as well the circumstances are different from their countries. The newly formed Saudi Indo Insurance Company with LIC as the main partner is expected to launch policies suitable in these conditions. SIICO must make sure that the policies would be portable i.e. transferable to their countries if, in case, the policy holders return back.

Group Term Insurance scheme:

• To employer-employee groups
• To associations of professionals like doctors, engineers, lawyers, etc.
• Members of welfare funds, societies, organisation, etc.
• Creditor-debtor groups to cover the outstanding loans. In this scheme the creditor is assured, if the debtor of a housing loan or of any other kind of loan dies, the creditor will get back his money fully. At the same time the debtor is assured if he dies before paying back the loans, his loans will be settled on his behalf. Thus, the heirs will not suffer if something happens to the head of the family.

Group Gratuity scheme:
Gratuity is a statutory liability of most of the employers, which accrues to an employee for every year of service put in by him. This scheme provides funding for gratuity liability. At the same time, every employee gets full life insurance coverage so that if he dies, his dependants get financial help equal to the amount of gratuity.

Group Superannuation scheme:
The Group Superannuation scheme is designed to provide pension to employees on their retirement. The pension to the employee until his death and then to his widow until her death, are guaranteed.

Social security Schemes:
The object of this scheme is to provide insurance protection to the rural and urban poor below the poverty line. 50% of the premium is subsidised from the Social Security Fund maintained by LIC and remaining 50% is contributed by members/Nodal Agencies/State Government.