Group Term Life Insurance
Life Cover That Comes With The Job
Group term life insurance gives every employee life cover under a single policy bought by the employer. If an employee dies during service, from any cause including illness, the life insurer pays a lump sum to the nominee. It is a valued benefit that costs far less per head than individual cover. MILES helps you design the benefit, compares quotes from life insurers, manages joiners and leavers, and supports families through the claim.
Why Employers Offer Group Term Life
Death From Any Cause
Pays the sum insured on death due to illness or accident while the employee is covered, subject to policy terms.
Cover Without Medicals
Most members are covered up to a free cover limit without medical tests, which varies by insurer and group size.
Cost-Effective Per Head
Group pricing is usually far cheaper than buying individual term policies for each employee.
Salary-Linked Benefit
Cover can be a flat amount or a multiple of salary or CTC, so it grows with pay.
Helps Retain Talent
A visible life benefit shows employees their families matter and supports hiring and retention.
Managed By MILES
We run renewals, member updates and death claims so HR is not left to deal with insurers alone.
What is group term life insurance?
Group term life insurance is a single life policy bought by an employer that pays a lump sum to an employee’s nominee if the employee dies while covered. It is pure protection: there is no maturity or savings value, which keeps the cost low.
The policy is issued by a life insurer and is usually renewed every year. It sits alongside medical cover within a wider group health and employee benefits programme and is often called GTL or group term insurance.
What it covers
- Death from any cause during the policy period, whether illness or accident, subject to the policy’s exclusions.
- Accidental death benefit rider: an extra sum insured if death is caused by an accident.
- Accelerated critical illness rider: part of the life cover paid early on diagnosis of a listed illness.
- Total and permanent disability rider: a benefit if the employee becomes permanently unable to work.
- Spouse cover: some insurers allow the spouse to be included, usually at a lower sum insured.
Riders vary by insurer and each carries its own terms and cost. We check that rider definitions do not overlap with benefits already paid under your group accident or health policies.
What is not covered
- Suicide within the period set by the policy, where the insurer pays according to regulatory rules rather than the full benefit
- Members above the free cover limit who have not completed the medical evidence the insurer asked for
- Employees who have left the company, since cover usually ends on exit
- Any specific exclusions agreed at underwriting, such as hazardous occupations
Who needs it
Any employer that wants to offer a meaningful family benefit. Start-ups use it to compete for talent. Mid-size firms add it when their group medical programme matures. Large employers use graded cover to recognise senior roles. It is also valuable where the workforce is young and unlikely to have bought personal cover.
For employees, group cover is a base layer. Because it usually ends when they change jobs, we encourage staff with dependants to hold personal term life insurance as well.
How the sum insured and premium are decided
| Design choice | Options |
|---|---|
| Sum insured basis | Flat amount, graded by band, or a multiple of annual CTC |
| Eligibility | All permanent staff, or specific grades or locations |
| Premium payer | Employer-paid, or with voluntary top-ups paid by employees |
| Riders | Accidental death, disability, critical illness, spouse cover |
The life insurer sets a free cover limit, the highest sum insured it will grant without medical evidence. This depends on group size and sum insured spread, and varies between insurers. Members above it may need a medical check or health declaration.
The premium rate depends on the average age and age spread of the group, gender mix, industry, locations, sum insured and past claims. Rates are usually quoted per thousand of sum insured and reviewed at each renewal. Premiums paid by the employer are generally treated as a business expense, subject to prevailing tax laws.
How MILES helps
- Design the benefit: we suggest a sum insured basis that is fair across grades and fits your budget.
- Compare life insurers: we obtain competing quotes and compare rates, free cover limits and rider wordings.
- Coordinate benefits: we align GTL with your group personal accident insurance and medical cover so the whole programme makes sense.
- Administer the plan: we handle member additions and deletions, pending medical evidence and renewal data.
- Claims support: we guide HR and the bereaved family with care until the claim is paid.
How a claim works
- HR informs MILES or the life insurer of the employee’s death.
- The nominee submits the claim form, death certificate, identity and bank proof.
- The employer provides a certificate confirming employment and cover on the date of death.
- For accidental death, the FIR and post-mortem report are also needed.
- The life insurer reviews the claim and pays the nominee. Our claims team tracks it throughout.
Cover, exclusions and premiums depend on the insurer’s policy wording and underwriting. MILES Insurance Brokers Pvt. Ltd. is an IRDAI-licensed direct broker (Life & General, Reg. No. 954); the insurance is issued by the life insurer. Insurance is the subject matter of solicitation.