Group Term Insurance

Best deals on both coverage and cost

End to end & paperless claim assistance

Clear features, benefits & cost for comparison

Dedicated relationship manager for each group

Tell us more to help you choose the right policy

  • What is Group Term Insurance?

    If you have recently landed a job, chances are that your employer may be offering you a group term insurance. If you are wondering what such an insurance plan is and how it can help you, here is everything you need to know about group term plans.

    As the name suggests, group term insurance plans are term plans offered to a group of people collectively. A group term insurance plan is available for enterprises or groups having a large number of members. The insurer offers term insurance for the entire group as per the needs of the administrating team. As an administrator, the company or group owner has the right to add or remove any members from the group term insurance plan as per their changing needs.

    Cover offered by group term plans: Group term insurance plans are term plans with no maturity benefits. The plan offers a protective component for the member as long as the plan is active. Some group term insurance plans offer uniform cover to all members while others can offer grades in cover as per the needs of the organization concerned.

    Premium payments for group term insurance: The premiums for a group term plan are paid by the employer or the group administrator. The members to whom the group term plan is offered do not have to pay for any premium from their own pocket.

    Prerequisites for a group term plan: Group term plans do not seek any medical tests from the members to be part of the term insurance plan. The premium for group term plans are renewed annually as per the underlying terms and conditions of the plan signed between the insurer and the group administrator.

    Benefits of a group term insurance plan: A group term insurance plan offers protective cover at no costs to the policyholder. Being a term plan while there are no benefits at maturity, death benefits received by the nominee of a group term insurance policy holder are exempted from income tax under Section 10(10D) of the IT Act.

    Advantages of Employee Group Term Insurance

    Group term insurance offers a great value for both employees and employers. On the one hand, a group term insurance allows for a protective component for employees, assuring them a protection against any unfortunate mishap. This improves the working levels and the trust employees have in their employer. The employer, on the other hand, is able to retain a higher number of employees, as offering a term plan shows that they are taking care of the health needs of the employees as part of the employer’s long-term agenda.

    Group term insurance plans are not just offered by insurers to increase term insurance cover for the uninsured. It comes with a number of unique benefits for all concerned.

    Here are some of the essential benefits of a group term insurance plan.

    Life protective offering

    Group term insurance plans offer a protective cover for all employees. This means everyone from the high ranked manager to a lower ranked fresher are all covered. Some group term plans offer a uniform cover while others offer cover as per the salary profile of the individual to offer optimum insurance for all employees.

    Low premium costs

    Group term insurance plans are one of the most cost effective insurance plans. Even for the employees, the cost of group term plans are minimal as compared to the benefits on offer. With low premium costs, group term plans ensure family members and dependants of the employee are not at risk in any unfortunate eventuality.

    No financial burden on the members

    Group term insurance plans are pocket friendly for the employees, but cost nothing to the employers offer such a plan. All premium costs are taken care of by the employee or the group administrator, making such group term plans financially viable for all employees or group members.

    Option to seek additional riders for a comprehensive cover

    Group term insurance plans offer the policyholder the advantage of seeking additional riders and pay the premium of the riders from their pocket to make their insurance more comprehensive as per their personal needs.

    Various protection grades

    Group term insurance plans can be tailor made for various employee grades as per their seniority, rank, or position etc. This can ensure higher protective component to older employees as a mark of a benefit for company loyalty.

    No medical tests required

    The group members or employees do not have to undergo any medical tests to be part of a group term insurance plan. With no medical tests and extra costs, the group term plans manage to be a cost effective for the insurer.

    No taxation obligations for death benefits

    The death benefits paid on death of a policyholder of a group term plan are tax-free for the nominee of the group term policy holder.

    Difference between Individual Term Plan and Group Term Insurance

    Term insurance plans are, by far, the most popular insurance plans worldwide. With growing financial awareness, term plans are making themselves popular in India as well. Today, term plans are available for individuals and are offered by employers and group administrators as part of a group term insurance for their employees.

    If you are wondering about the difference between the two, here is what is different between an individual term plan and a group term insurance plan.

    Difference in premium payments payout: For an individual term insurance plan, the premiums are paid by the policyholders themselves. This is not the case with a group term plan. In group term insurance, the premium payments are taken care of by the group administrator or the employer offering such plans.

    Prerequisites for enrolling members: A group term insurance plan is not offered to everyone, and the insurer usually offers such plans to employer-employee groups, banks, microfinance institutions, etc, with more than 50 members on an average. Individual term plans have no such prerequisites and are available to all who fulfill the eligibility criteria of the term plan.

    Group plan terms are as per insurer-group owner: In group term insurance plans, the terms and conditions are decided by the insurer and the group administrator. The policy owner has no role in deciding the terms and conditions, unlike in an individual term plan.

    Premium for individual term plans offer tax benefits: The premium paid for an individual term insurance plan is eligible for tax deduction under section 80C. In a group term insurance plan, no premium is paid by the policyholder.

    Difference in sum assured in group and individual term plans: The sum assured can be opted as per the financial needs of an individual in an individual plan. The sum assured is usually fixed in group term plans by the policy administrator and the insurer.

    Difference between individual term plans and group term plans at a glance

    Features/Benefits Individual term plan Group term plan
    Premium payment To be made by the individual policyholder To be made by the group administrator or employer
    Availability Available for all as per eligibility criteria norms Available to professional groups or enterprises
    Terms and conditions As per terms and conditions agreed between policyholder and insurer As per terms and conditions agreed between group administrator and insurer
    Sum Assured Flexibility to choose Sum Assured Sum Assured fixed by the group administrator
    Tax benefits on premium Premium paid eligible for tax deduction under section 80C No benefits as premium is paid by group administrator

    What are the Top group Term Insurance Plans available in the market

    Group term insurance plans add value for the employers as well as the employees. It safeguards the employees from any eventuality during their working years. Today insurers offer multiple group term insurance plans available for employee-employer groups as well as other social groups.

    Here is a look at some of the well known and popular group term insurance plans currently active in the market.

    1: LIC Group Credit Life Insurance

    LIC Group Credit life insurance is a single premium term insurance group plan offering death benefits in the unfortunate event of death of the member. The plan offers a minimum Sum Assured of Rs. 40,000 with a minimum group size of 50 members. The policy term for LIC Group Credit life insurance plan is between 5 to 35 years.

    https://www.licindia.in/getattachment/Group-Schemes/Group-Scheme/Sales_Brochure_LIC_GCLI.pdf.aspx

    2: Kotak Term Group Plan

    Kotak Term Group Plan offers a lump sum benefit to the beneficiary in the event of demise of the policyholder. The plan offers a choice of preferred premium payment mode along with a voluntary cover for spouses on payment of a smaller additional premium. The basic sum assured for each member if fixed at Rs. 1000 with no upper limit making the plan ideal for all group members as per their grade and income levels.

    https://insurance.kotak.com/group-plans/group-term/kotak-term-group-plan

    3: Aegon life group term plan

    Aegon life group term plan is a popular group term insurance plan made exclusively to safeguard the financial needs of family members of the life assured. The plan offers the employer to fix the sum assured as per the member’s gross salary, as a flat or fixed cover or as a grade wise cover making the term insurance plan fully customizable for each employee. Members can be easily added or removed on a monthly basis, making the plan user friends for the group administrator or employer.

    https://www.aegonlife.com/insurance-plans/group-insurance-plans/aegon-life-group-term-plan

    4: ICICI Pru Group Term Plus

    ICICI Pru Group Term Plus offers life cover to all group members ensuring financial security for the nomine and family members of the group member. The minimum amount of life cover available under the plan is Rs. 5,000 for each member. The premiums can be paid either monthly, quarterly, half-yearly and yearly as per the financial plans of the employer or the group administrator. The employer also can avail tax deductions on the premium paid.

    https://www.iciciprulife.com/group-insurance/group-term-insurance-plan.html

    5: Future Generali Group Term Life Insurance Plan

    Future Generali Group Term Life Insurance Plan is designed exclusively for smaller and bigger groups seeking term insurance for its members. The plan offers a minimum sum assured of Rs. 5000 for a minimum group size of 25 members. The employer or group administrator has the option of adding or deleing members on a monthly basis.

    https://life.futuregenerali.in/insurance-plans/group-plans/future-generali-group-term-life-insurance-plan

    6: LIC Single Premium Group insurance

    LIC Single Premium Group insurance is a single premium term insurance group plan offering death benefits in the unfortunate event of death of the member. The plan offers a minimum Sum Assured of Rs. 5,000 with a minimum group size of 50 members. The policy term for LIC Single Premium Group insurance is between 2 to 7 years.

    https://www.licindia.in/getattachment/Group-Schemes/Group-Scheme/Sales_Brochure_LIC_SPGI.pdf.aspx

    7: PNB MetLife Group Term Life Plus

    PNB MetLife Group Term Life Plus offers group term protection individually as well as in lieu of mandatory EDLI (Employee Deposit Linked Insurance Scheme). The plan offers 100% of the sum assured in case of the unfortunate event of death. The minimum sum assured is fixed at Rs. 1000 with a one year renewable term. The plan also offers the option to convert to individual coverage when an employee leaves the organization.

    https://www.pnbmetlife.com/insurance-plans/group/group-term-life-plus.html#parentHorizontalTab

    8: Sud Life Group Term Insurance

    Star Union Dai-ichi Life Group Term Plan offers customizable protection for a group term insurance. The plan comes with simplified process with no medical test requirements up to free cover limit. The minimum sum assured for groups is Rs. 5000 per member with a maximum sum assure limit of Rs. 50 crore per member. The premium payment mode is flexible with yearly, half-yearly, quarterly or monthly payments.

    https://www.sudlife.in/insurance-plans/group-insurance/term-plans/group-term-insurance-plus-scheme

    9: HDFC Life Group Term Plan

    HDFC Life Group Term Insurance Plan is a popular group insurance plan offering sum assured to the nominee on death of the covered member. The plan offers one master policy covering all members of the group with an annually renewable premium. Employees can be additionally covered by riders including accidental, critical illness or disability. The plan also offers cover for policies issued in lieu of Employees Deposit Linked Insurance (Amendment) Scheme 2016 (EDLI)

    https://www.hdfclife.com/group-insurance-plans/group-term-insurance

    Top Group Term Insurance Plans at a glance

    Group Term Insurance Plan Name Minimum-Maximum entry age Maximum maturity age Coverage term Minimum-Maximum Sum Assured Premium payment term Premium Payment Modes Minimum Group Size
    LIC Group Credit Life Insurance 18-60 years 65 years 5 to 35 years Rs.4,00,000- No upper limit Same as policy term Single premium only 50 members
    Kotak Term Group Plan 18-74 years -- 1 year (Annually Renewable) Minimum: Rs. 1,000 Maximum: No Limit Same as policy term Annual / Half-yearly / Quarterly / Monthly 50 members- no upper limit
    Aegon life group term plan 18-59 years 60 years 1 year (Annually Renewable) Minimum: Rs. 5000 per member Maximum: Rs. 2,00,000 per member Same as policy term Annual / Half-yearly / Quarterly / Monthly 50 members- no upper limit
    ICICI Pru Group Term Plus 15-79 years -- 1 year (Annually Renewable) Minimum: Rs. 5000 per member Same as policy term Annual / Half-yearly / Quarterly / Monthly Formal group: Minimum 10 members Informal group: minimum 50 members
    Future Generali Group Term Life Insurance Plan 18-69 years 70 years 1 year (Annually Renewable) For social groups with 5000 members or above: Rs 1000/- per member. For other groups: Rs 5000/-. Same as policy term   Minimum 25 members per group
    LIC Single Premium Group insurance 18-60 years 65 years 2-7 years Rs. 5000 – Rs. 10 Lakhs Same as policy term Single premium only 50 members
    PNB MetLife Group Min-Max for Employer EE : 81 years Non EE : Year renewable Term Minimum Rs. 1000 per life- Regular Annual, Semi-Annual, Minimum group size: 50.
    Term Life Plus Employee (EE): 18-80 years Min-Max for non Employer-Employee (NEE): 15-60 years 61 years one year maximum as defined in the rules of the group insurance scheme under administration or as defined by the employer for employer- employee group and Master Policyholder for non-employer-employee group.   Quarterly, Monthly For gratuity Minimum group size: 10.
    Sud Life Group Term Insurance Min-Max for Employer-Employee (EE): 18-79 years Min-Max for non Employer-Employee (NEE): 18-64 years Employer-Employee-Groups:- 80 years Non Employer Employee Groups:- 65 years One year renewable For Groups other than Group Term Insurance Scheme in lieu of Employee’s Deposit Linked Insurance: Rs. 5000 per member For Group Term Insurance Scheme in lieu of Employee’s Deposit Linked Insurance: Rs. 362,000 per member Same as policy term Annual, Semi-Annual, Quarterly, Monthly For Compulsory Employer-Employee groups: 10 members Otherwise : 50 members
    HDFC Life Group Term Plan 16 years (18 years if rider is chosen)-79 years (64 years if rider is chosen) 80 years One year renewable Rs. 5000- No upper limit Same as policy term Annual, Semi-Annual, Quarterly, Monthly Employer-Employee Groups – 10 Others - 50

    What are the exclusions of group Term Insurance?

    Group term insurance plans are today offered by almost every major employer as part of a protection plan for its employees. Group term insurance plans are not only protective instruments safeguarding the life of the employees, they also come at no extra cost for the employee. All premiums are taken care of by the employer making group term insurance plans an effective protective instrument.

    Amid all the benefits offered by group term insurance plan, majority of employees do not take time out to read the terms and conditions of such a group term insurance plan. Not reading the terms and conditions means that most of the group term insurance policyholders are unaware about the possible exclusions in a group term plan. To avoid a claim denial at any stage, all inclusions and exclusions in a group term insurance plan should be read in detail.

    While the exact nature of possible exclusions in a group term insurance plan may differ from one insurer to the other as per the selected plan, here are common exclusions that are part of every group term insurance plan.

    Suicidal death is excluded in group term insurance plan: Group term insurance plan offers a protective insurance component for any sudden death of the policyholder. However the protection is limited to natural or accidental deaths only and suicidal cases are excluded under the ambit of a group term insurance plan.

    Some group term insurer limit the non coverage of suicidal deaths in the first year or first couple of years of the policy. Reading the terms and conditions of the group term insurance can reveal if the policy offers protection for such deaths after a certain number of years.

    No medical tests for group term insurance plan: Group term insurance plans do not seek any medical tests. But let’s se a scenario here. Suppose Mr. A opts for a group term plan, but is suffering from depression or any such mental condition. He is still covered for the treatments for the condition, even if it is a pre-existing disease. But if Mr. A commits suicide due to any such reason, the insurer is not bound to offer any protection to the life insured.

    Questionable death and group term insurance claims: Post death a medical certificate is needed to ascertain the cause of death of the policyholder. The insurer then conducts an in house enquiry for the same and if the death is found to be a case of self inflicted or suicidal one, the insurer can deny the claim.

    Exclusions in critical illness or accidental death benefit rider

    Group term insurance plans come with various additional covers like critical illness rider or accidental death benefit rider. If either a critical illness or accident leading to any bodily injury or death is because of any of the following circumstances, the claim is part of group term insurance exclusion and not entertained.

    • The policyholder was found to be under the influence of alcohol or drugs
    • The policyholder was involved in a deliberate hazardous activity like racing etc.
    • The policyholder was taking part in any illegal or unlawful activity.
    • The policyholder had a preexisting disease hidden from the insurer.
    • The policyholder’s death was because of any pregnancy related complications (in case of a female policyholder)

    Group term insurance exclusions at a glance

    • Read the policy document to ascertain the exact policy exclusions of a group term insurance plan.
    • Suicidal deaths or deaths by self inflicted wounds are not covered under group term insurance plans.
    • Some insurers have a limit on the number of years for exclusion for social deaths while others exclude such deaths for the entire term.
    • Death due to drunk driving or lifestyle related diseases hidden from the insurer are also excluded.
    • Death due to pregnancy related complications are also excluded from most group term insurance plans.

  • Q: What is group term insurance?

    Q: What is the difference between term insurance and group term insurance?

    Q: Who can opt for a group term insurance?

    Q: What are the different types of group insurance plans?

    Q: Do group term plans offer any maturity benefits?

Guest can easily contact host by sending a message to the host.



Top