I live in a residential society and I am the residents’ welfare association (RWA) president. In the general body meeting (GBM), we decided to buy life insurance policies for five of our security guards, three maintenance staff, and three housekeeping ladies. Can you suggest which policy we can buy and approximately how much would it cost? Are any discounts available if you buy policies in bulk?
—Raj Rajeshwari
You could buy either an individual term life insurance policy for these employees or buy a group term life insurance. A group term life insurance policy is an annually renewable policy. Herein, you can add or remove employees during the year. If employees leave midway, you will get a refund for the remaining period in the policy. If someone joins, you would be charged premium, again only for the remaining period. Premium for group policies are generally lower than individual policies. Only a few insurers offer group coverage for small groups and generally have a minimum requirement of 10 employees.