Group Term Life Insurance for Employees
Shield your employees from life’s unexpected curveballs. Group Term Life cover gives beneficiaries financial security and independence in the unfortunate event of an employee’s demise — under one affordable policy, from ₹145 per employee per month.
*T&Cs apply
What is Group Term Life Insurance?
Group Term Life insurance is a type of life insurance plan that covers multiple individuals — a group — under one policy. Its main goal is to provide financial protection to the beneficiary if a covered person passes away during the policy term. Plans are usually affordable because the risk is spread across a large group of people.
Term insurance acts as temporary protection — for example, covering financial obligations such as a mortgage, or supporting dependents in the absence of the insured. It offers a reliable support system and peace of mind for both employees and their families.
Types of Group Term Life Insurance
Employer-sponsored GTL
Offered as a standard employment benefit. The employer usually pays the premium, with cover typically set as a multiple of the employee’s salary. Basic cover gives a standard level of protection; supplemental cover lets employees buy additional protection, sometimes with critical-illness or group personal accident riders.
Association & affinity group cover
Provided through an association or affinity group (such as a credit union or alumni body), letting members buy cover at a reduced cost.
Credit life insurance
Extended by lenders to borrowers — it settles the borrower’s outstanding debt if they pass away before it is fully repaid.
Wholesale group cover
Sold to a group such as a corporation or labour union at a discounted cost, with the group then allocating cover to its members.
Features of Group Term Life Insurance
- Life cover for multiple individuals under a single policy
- Premiums typically paid or significantly subsidised by the employer
- The sum assured is paid to the nominated beneficiary on the insured’s death
- Cost-effective cover thanks to lower group premium rates
- Fixed premium, annually renewable — offering continuous protection
- Actual cover can vary by risk class, salary grade and group size
Advantages and benefits of Group Term Life Insurance
A win-win for both employees and employers.
For employees
Affordable or no-cost default cover
Group life plans offer economical cover to each member — usually far cheaper than an individual policy, often provided as a default perk.
No preconditions
Unlike individual policies, group plans typically need no pre-medical screening up to a certain cover limit, and no extensive review of lifestyle or medical history.
Streamlined claim settlement
The claim process is usually swift and hassle-free — beneficiaries simply submit the required documents to the insurer to start settlement.
For employers
Cost-effective premiums
Group premiums are typically lower than individual ones, so employers can cover the same number of employees for less.
Enhanced employee retention
Group term life acts as a valuable incentive, encouraging loyalty and higher retention across the workforce.
Improved morale
The security and peace of mind the cover provides supports a positive work environment, higher morale and productivity.
What’s not covered in Group Term Life Insurance?
Suicide
Death by suicide is often treated as an intentional self-inflicted injury, and beneficiaries may not receive benefits under the policy.
Injury from dangerous activities
Injuries sustained during activities deemed dangerous (such as skydiving) may not be covered unless the policy explicitly includes them.
Always review the specifics of your Group Term Life plan to understand the precise cover and any exclusions, so you can make well-informed decisions for your employees’ loved ones.
Buying or enrolling in a Group Term Life plan
Check with your employer
Confirm with your HR department whether Group Term Life is available and how enrolment works.
Understand the coverage
Review the sum assured, any additional benefits and any exclusions that apply under the policy terms.
Complete enrolment & documents
Follow the enrolment steps and provide any required documents, such as proof of employment or identification.
Nominate beneficiaries & review
Designate who will receive the benefit, then review and sign the policy — and pay any applicable premium to keep cover active.
Why choose Onsurity as your Group Term Life partner?
Flexible monthly subscription plans for teams starting from 3 members — no large lump sum upfront. Trusted by thousands of businesses and members, with an effortless claims experience handled end-to-end by the Good Doctors team, and comprehensive healthcare and wellness bundled alongside insurance.
Onsurity has paid ₹600 Cr+ in claims across 100,000+ claims — protection your team can count on.
Group Term Life Insurance FAQ
Group Term Life (GTL) insurance is a life insurance plan that covers multiple people — usually a company’s employees — under a single policy. It provides financial protection to the nominated beneficiary if a covered person passes away during the policy term. Because the risk is spread across a large group, these plans are usually very affordable.
Common types include employer-sponsored cover (basic and supplemental), association or affinity group cover, credit life insurance offered by lenders, and wholesale group cover sold to a corporation or union that then allocates cover to members.
Insurers may deny benefits in certain situations — for example death by suicide, or injuries from activities deemed dangerous (such as skydiving) unless explicitly covered. Always review your policy’s terms, conditions and exclusions to understand the precise cover.
Eligible groups include employee-employer groups (the most common), non-employer-sponsored groups such as professional associations and cooperatives, financial institutions covering their customers, and professional groups. Specific criteria and cover amounts can vary by group, and some plans offer graded cover based on salary or grade.
Onsurity offers flexible monthly subscription plans for teams of 3 or more — with no large upfront lump sum — is trusted by thousands of businesses and members, provides an effortless claims experience through the Good Doctors team, and bundles comprehensive healthcare and wellness alongside insurance.
Give your team’s families lasting security
Group Term Life cover for teams of 3 to 500+, from ₹145 per employee per month — affordable premiums, flexible monthly plans and claims handled for you.
Get a term life quote