For a very small cost per employee, an employer can promise something profound: that if the worst happens, an employee’s family receives a meaningful sum. Group Term Life makes that promise, and it is among the most valued benefits a company can offer.
What group term life is
Group Term Life (GTL) pays alump sum to an employee’s nominee on death during employment, from any cause— illness or accident alike. It is pure protection, arranged for the whole group under one policy, at a low per-employee premium.
Why businesses offer it
- Financial security for families— the core purpose, and a powerful one.
- Loyalty and retention— a benefit employees rarely find lightly given.
- Very low cost— group pricing makes substantial cover affordable.
- Completes the benefit stack— alongside group health and personal accident.
What it covers
Death from any cause during the cover period. Optionalridersbroaden it — accidental death benefit, disability, critical illness and terminal-illness acceleration — turning a simple life cover into a fuller protection package.
How the sum assured is set
| Flat cover | A single sum assured for every employee. |
| Salary multiple | A multiple of annual salary — commonly two to five times. |
| Graded | Cover scaled by grade or designation. |
The free cover limit
GTL vs individual term insurance
GTL is employer-paid, needs no medicals up to the free cover limit, and is cheap — but itends when employment ends. Individual term insurance is portable, owned by the employee, and typically larger. The sensible message to employees: value the GTL, but hold personal term cover too.
Tax treatment
Premiums paid by the employer are generally an allowable business expense, and the death benefit to the nominee is ordinarily tax-free under Section 10(10D), subject to conditions. Confirm the specifics with your tax adviser.
At the time of a claim
On death, the nominee submits the claim form, death certificate and identity documents; the insurer settles the sum assured. Clean nominee records maintained by HR make settlement quick.
How Aurevian helps
Aurevian helps youchoose the right sum-assured basis, secure a sensible free cover limit, add riders that matter, and negotiate terms and renewals— so the promise behind the benefit is one the policy will keep.
“Few benefits cost so little and mean so much to a family as group term life.”
