Definition
Corporate Cover
Corporate cover refers to group insurance benefits an employer arranges for staff, spanning group health, group term life and group personal accident.
Beyond group mediclaim, large Indian employers often bundle group term life and group personal accident into the benefits package, with sums insured tied to salary multiples. Such cover is a cost-effective way to provide protection because of group pricing and minimal underwriting.
The key limitation is that corporate cover lapses on resignation, retirement or layoff, often when the employee most needs continuity. Sums insured may also be modest relative to a family's real needs, so corporate cover is best treated as a supplement to, not a substitute for, personal policies.
Related terms
- Group Health InsuranceGroup health insurance is a single policy covering a defined group, typically employees of a company, often including their dependents.
- Group Term LifeGroup term life is a single life insurance policy providing term cover to a group of people, commonly employees, with the employer as master policyholder.
- Group Personal AccidentGroup personal accident cover provides accidental death and disability benefits to a group of people, typically employees, under one policy.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.