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Provide financial protection to employees in your establishments with comprehensive Group Term Life Insurance solutions.
Our insurance expert will reach out to you shortly to help you get started.
PRODUCT OVERVIEW
Group Term Life Insurance (GTL) is a life insurance solution that provides financial protection to a defined group of individuals under a single master policy for a specified policy term. Commonly offered by employers, organisations, banks, NBFCs, associations, and institutions, the policy helps provide a death benefit to the nominee or beneficiary in the event of the insured member’s demise during the coverage period. In employer-employee setups, the organisation acts as the master policyholder while employees are covered members under the scheme. Group Term Life Insurance is widely used as an employee welfare and retention benefit due to its cost-effective structure, simplified administration, and scalable coverage options. Depending on the policy structure, coverage may also be extendable to spouses, dependents, or specific member groups.
HIGHLIGHTS
PROCESS
An organisation, employer, bank, or institution purchases a Group Term Life Insurance policy to cover eligible employees or members under a single master policy.
Eligible members are enrolled under the policy, and coverage amounts are defined based on organisational structure, salary, designation, or policy terms.
The premium is paid either by the organisation or jointly with members, after which the insurance coverage remains active during the policy tenure.
In case of the insured member's demise during the policy term, the nominee raises a claim, and the insurer verifies the submitted documents.
Upon successful verification, the insurer pays the eligible death benefit amount to the nominee or beneficiary as per the policy terms.
Advantages
Employees are automatically covered under the policy as part of the group without needing an individual life insurance plan.
Many group policies offer simplified enrolment without extensive medical underwriting requirements.
Provides a death benefit to nominees, helping families manage financial obligations during unforeseen situations.
REASON
Helps organisations strengthen employee benefits and financial protection initiatives under a single policy framework.
Covering employees under a group structure is generally more economical than individual policy issuance.
Eligible premiums and policy benefits offer tax advantages subject to prevailing tax laws and regulatory provisions.
Employers can tailor benefits, coverage limits, and add-on protections based on organisational requirements.
A single master policy streamlines enrolment, renewals, servicing, and overall workforce coverage management.
Group Term Life Insurance can be structured for startups, SMEs, corporates, associations, and institutional groups.
Understanding life insurance options doesn’t have to be complicated. Here’s a simple comparison to help you choose between group term life insurance and individual life insurance.
| Basis | Individual Life Insurance PERSONAL PROTECTION | Group Life Insurance CORPORATE COVER |
|---|---|---|
| Policy Owner | Individual | Employer or organisation |
| Coverage | Covers one individual | Covers a group under one policy |
| Premium | Usually higher | Lower due to group pricing |
| Medical Check-Up | Required | Not required |
| Coverage Amount | Customisable | Fixed or salary-based |
| Flexibility | More rider and plan options | Limited customisation |
ELIGIBILITY
Group Term Life Insurance can be purchased by corporates, SMEs, startups, banks, NBFCs, microfinance institutions, associations, and other recognised groups or institutions.
Coverage can be provided to employees under employer-employee groups or to members of professional associations, societies, affinity groups, and other recognised organisations.
The minimum number of members required for policy issuance varies depending on the insurer and the policy structure.
The minimum eligible age for members is typically 18 years, while the maximum entry or coverage age generally ranges between 65 and 69 years.
Policies may offer uniform coverage for all members or graded coverage based on designation, salary band, or role within the organisation.
Individuals must belong to the defined and approved group covered under the master policy to be eligible for coverage.
ADD-ONS
Provides additional financial protection in case of total and permanent disability caused by an accident.
Offers coverage against specified critical illnesses as defined under the policy terms.
Allows extension of insurance coverage to spouses of insured members, subject to insurer guidelines and underwriting.
Members may opt for enhanced life coverage beyond the base policy by paying an additional premium.
STRUCTURING POLICY
Determine whether the policy will cover full-time employees, contractual staff, or specific departments. Most insurers require a minimum group size of around 10–25 members or more.
Decide how the sum assured will be structured, such as flat coverage with the same cover amount for all employees, salary-based coverage linked to annual salary or CTC, or grade-based coverage where benefits vary based on designation or hierarchy.
Choose whether the premium will be fully employer-funded, shared between the employer and employee, or offered as voluntary top-up coverage.
Coverage can be enhanced with riders such as accidental death benefit, disability cover, and a critical illness rider.
Group Term Life policies are renewed annually, and coverage may be revised based on employee count, claims history, and workforce changes.
Evaluate insurers based on claim settlement support, servicing capabilities, scalability, and ease of administration.
Clearly specify whether employee coverage ends immediately after exit or can be converted into an individual policy.
Keep employee records, nominee details, salary data, and policy documents updated for smooth administration and claim processing.
NOTE: Premiums are influenced by workforce demographics, average age, industry risk category, attrition levels, and total sum assured.
COVERFOX EDGE
Get access to trusted insurers offering Group Term Life Insurance solutions tailored for organisations and workforce groups.
Customisable policy structures designed for corporates, SMEs, startups, associations, and institutional groups.
Receive assistance across onboarding, policy servicing, renewals, and claims coordination through a dedicated support team.
We partner with top insurers registered with IRDAI to offer compliant solutions.
Get access to trusted insurers offering Group Term Life Insurance solutions tailored for organisations and workforce groups.
Customisable policy structures designed for corporates, SMEs, startups, associations, and institutional groups.
Receive assistance across onboarding, policy servicing, renewals, and claims coordination through a dedicated support team.
We partner with top insurers registered with IRDAI to offer compliant solutions.
CLAIM
Coverfox will assist the policyholder with the claim resolution. The employer must follow these steps to raise a claim for WC policy through Coverfox:
Inform help@coverfox.com about the insured member’s demise to initiate the claim process.
The claim is registered after receiving the required policy and member details.
Submit the claim form, death certificate, member details, and other policy-related documents for assessment.
The insurer reviews the submitted documents and verifies the claim as per policy terms and coverage conditions.
Upon approval, the eligible claim amount is paid to the nominee or beneficiary specified under the policy.
In most cases, the coverage ends once the employee exits the organisation or is no longer part of the insured group. Certain insurers may offer an option to convert the group policy into an individual life insurance policy.
Yes, Group Term Life Insurance solutions can be customised for startups, SMEs, and growing businesses, subject to insurer eligibility criteria and minimum group size requirements.
This depends on the employer’s policy structure and insurer guidelines. Some organisations provide mandatory coverage for all eligible employees, while others may offer it as an optional benefit.
Yes, organisations can structure different sum assured limits based on employee grade, designation, salary structure, or internal HR policies.
Group Term Life Insurance provides financial protection in case of the insured member’s demise, whereas health insurance covers medical and hospitalisation expenses.
Yes, most Group Term Life Insurance policies cover death due to natural as well as accidental causes, subject to policy terms and exclusions.
Certain Group Term Life Insurance plans may allow employers to extend coverage to spouses or dependents through optional add-on benefits.
Eligibility for contractual, temporary, or part-time employees depends on the insurer’s underwriting guidelines and the organisation’s policy structure.
Waiting periods may vary depending on the insurer and policy type, particularly for optional riders or additional benefits.
Yes, insurers may offer optional riders, including accidental death, permanent disability, and critical illness coverage, to enhance the base policy.
Premiums are determined based on factors such as group size, average member age, coverage amount, industry type, and chosen benefits.
Not always. Many group policies offer simplified onboarding with minimal or no medical examinations for standard coverage limits.
Yes, insurers generally specify a minimum group size requirement, which may vary depending on the policy and insurer.
Yes, organisations may revise coverage amounts during policy renewal, subject to insurer approval and underwriting conditions.
Yes, premiums may vary depending on the age distribution, risk profile, industry category, and claims experience of the group.
Disclaimer
Group Term Life Insurance coverage, eligibility, premiums, benefits, riders, inclusions, exclusions, and claim settlement are subject to insurer terms, underwriting guidelines, and policy conditions. Add-on covers such as critical illness, accidental disability, spouse cover, and wellness benefits may vary depending on the insurer and selected policy structure. Please refer to the policy wording and product documents for complete details before purchase.
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