GTL – Group Term Life

▰ Group term life insurance policy refers to the insurance

coverage that is provided to a group of people.
▰ Group term life insurance schemes offer financial
independence to the concerned employee’s family in the event
of death.
▰ It is intended to provide monetary guarantee to the
beneficiary of the covered under the group term life insurance
plan in the case of death of the insured.
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 Eligibility for GTL

▰ Group term life insurance policies are offered to the following sections of people:-
⚫ Employer-employee groups
⚫ Non employer- employee groups
⚫ Banks
⚫ Professional groups
⚫ Non-banking financial institutions
⚫ Microfinance institutions

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 Types of Policies

⚫ Some plans may offer uniform covers to all of its members.

⚫ Some plans offer ranked covers for various grades of members.
⚫ Some schemes have riders like critical illness benefits, accident
benefits, disability benefits, etc.

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 How GTL Plan works?

⚫ A group administrator is issued a master policy upon which he pays an initial premium.
⚫ This initial payments covers all the members of the group for a tenure one year.
⚫ An option to choose the sum assured may be provided to the members of the group.
⚫ Once the policy holder has paid the premium, the members are covered for a tenure of one
year from the date of commencement of the policy.
⚫ The group life insurance plans are annually renewable.
⚫ The premium is charged based on the alterations in the size and age allocation of the
concerned age group

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 Features of GTL

⚫ Members can be added at any point of the year.

⚫ A pre decided sum assured is paid to the beneficiary of the insured in the event of
death.
⚫ Add on covers are provided as riders that insure for critical illnesses, accidental deaths,
disabilities, and Terminal illness.
⚫ Application process is quick and easy.
⚫ The minimum size of the group is 25^ members.
⚫ Cheaper than individual policy cover.
⚫ Employees can enjoy the benefits they are entitled to while maintaining a healthy and
strong connect with the employers.
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Varies from Insurer to Insurer

 Free Cover Limit

⚫ In a Group Life Insurance policy, the insurer calculates the ‘free cover
limit’ (FCL) for the scheme. A free cover limit is also known as the ‘Free
cover level’ or ‘No evidence limit’.

⚫ A free cover limit or the no evidence limit is the amount of cover that each
individual policy member can have without any requirement of medical evidence
or underwriting. Thus, a free cover limit does not require any evidence of
insurability from the participating employees of the scheme. A free cover limit
has the ability of cost and time-saving.
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Varies from Insurer to Insurer

 Thank you

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