Group Term Life Insurance for the Modern Workforce

Group life insurance for teams of all sizes. Give extra care to all members of your organisation with a group term insurance plan.
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Table of contents

What is group term life insurance?
What does group term insurance mean?
Features of group term life insurance
Benefits of a group term insurance policy
Who is eligible for a group term life insurance plan in India?
FAQ
Reviews

What is group term life insurance?

Group term life insurance is a special  insurance plan crafted to provide life cover to your employees. In an organisation, a group term insurance plan comes under the umbrella of benefit packages at zero cost to the employees salary. As we mentioned above, this insurance cover is suitable for groups of employer-employees. It is applicable to all the members of your workplace and is aimed at supporting the family of an employee who has passed away in the course of active employment.
So what does group term life insurance means?
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Well, you can extend the health insurance plan's scope to cover the spouse, children, parents, or parents-in-law of employees. In addition, a group plan also covers personal accidents, maternity benefits, daycare treatments, room rents, among many other additional services. At Plum, we take great care to understand the needs of the employer and employee. Therefore, we structure plans that offer more value and benefits at affordable costs.

What does group term insurance mean?

A group term insurance policy is a first-class method to protect your company’s most prized assets - your workforce and their family members. In case of life’s unpleasant uncertainty decision to strike one of your employees, their families need not worry about moving forward.
A group life insurance policy will release a substantial payout amount (lump sum or equated) in such harsh times. This financial compensation is meant for the spouse and children (beneficiaries & dependents) of the insured employee. The beneficiary family members can utilize the payment from the policy as a substitute for income without worrying about compromising their financial independence. Thus, living stress-free ever after.

Features of group term life insurance

Employer-sponsored group term life insurance is a free employee benefit. As a group, It is low-cost than getting an individual term life insurance plan for each worker. Here is your go-to list of the key advantages.
Complete cover
A group term life insurance scheme is a single master contract plan to cover all employees. Your workforce can avail comprehensive life cover benefits at no cost to their paycheck.
Guaranteed benefit
There are times when your employee’s family needs financial support post the demise of the insured. GTL insurance will do the needful of providing adequate death benefits as compensation.
Full support
Group term plans are special life schemes that cover death. All employees, by default, come under such plans as soon as they join the organisation without the need for medical report submission.
Optional riders
Apart from the death benefit, you can also take advantage of additional add-ons to the master policy such as coverage for critical illness, permanent or temporary disability, accidental death.
Gratuity selection
As an employer, you can save a good sum of money with a group term life policy. The monies can be invested for the long run and provide gratuity facilities to the eligible employees.
Customise and go
Employees can be added or subtracted from the master plan as they come and go. The premium cost is directly proportional to the number of employees in your company.
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Benefits of a group term insurance policy

The advantages of a group term life plan are multifold, here is a table comprising the key benefits for employer-employees.
For Employers
Life insurance coverage for each employee under a single master plan
High cover option at an affordable low-cost premium
Avail tax benefits & deduction under Section 37 of the Income Tax Act, 1961
Keeps employees motivated reduces attrition and retains good talent
Add and delete policy members as they join or leave
Builds a solid financial foundation for your keyman-employees
Facilitates gratuity liability and payment in the long run
The entire GTL fund is managed by seasoned financial experts, thus reducing market risk
Option to provide additional coverage for terminal/critical illness and more
Helps to build employee trust and job safety in uncertain times
Customised dashboard for quick and straightforward employer-employee policy management
For Employees
Provides monetary assistance to the family of the employee post untimely death
It is a prerequisite given to the employee for joining the organisation.
Only the premium paid by the employee is subject to a tax deduction
The death benefit is completely tax-free under Section 10(10D)
No need to undergo a medical test
It brings about financial independence
Supports employee dependents and family members in times of grievance
Employees need not worry about fund management in times of emergency
Complete digitised claims process and superior experience with Plum Insurance
File a claim within minutes and much more on WhatsApp
Obtain financial security for your children and spouse
Note: Employees can only avail of a cashless claim at one of the insurer's network hospitals. It is crucial to ensure that the insurer has network hospitals across the country.

Who is eligible for a group term life insurance plan in India?

The following enterprises are allowed to purchase group life plans in India for their respective workers, employees, and groups. As a standard practice, the minimum age at entry is 18 years and the maximum age (upper limit) is between 65 to 69 years.
Formal employer-employee groups
Microfinance institutions
Banking Companies
Informal non-employer-employee groups
Non-financial banking institutions
Professionals Groups and associations

Here's how group term life insurance is better with Plum

Taking care of one's family post the loss of the breadwinner is indeed a difficult task. We at Plum Insurance love all employees and their families 3000. For that reason, we offer superb GTL plans for all corporates, startups, SMEs and more with the following features.
100% digitised claims experience
Option of group health insurance
Unlimited doctor-on-call consultations
Speak to Kumar, our 24x7 chatbot
Good discounts on medicines
Send us a Hi on WhatsApp for support
Get wellness sessions from industry experts
Comprehensive annual health check-ups
Option of group personal accident cover

Frequently asked 
questions

What is ranked cover in group term insurance?

Although most organisations provide universal group term life cover or primary term cover, multinational corporations allow ranked cover depending on the employee's grade. A grade can be defined as a combination of designation, role or number of years served by the employee.

What is the sum assured in group term insurance?

The sum assured is commonly known as a death benefit in group life insurance plans. A death benefit is the lump sum payout the deceased employee's family receives under the group life cover scheme.

How do group term plans work?

All group term life insurance covers work on the simple concept of death benefit payout. For example, Company B buys a group term plan for Mr. A (an employee) with a sum assured of Rs. 20 lakhs. If Mr. A meets with an accident and is no more, the sum assured amount of Rs. 20 lakhs will be provided to the family members of Mr. A.

As an individual, can I buy group life insurance?

No. Individuals are not allowed and not eligible to buy group term insurance policies in India. You have to be part of a group to get the benefits of such a plan.

Is there a minimum sum that is assured under group term insurance?

Yes. The minimum sum that is assured under a group term life insurance coverage scheme ranges between Rs. 1000 to Rs. 5000. This again varies across different plans, employee grades, and insurance groups.

What is the minimum tenure under group term insurance?

The minimum tenure under group term is one year. Your company usually renews this plan on an annual basis.

What is the minimum number of employer-employees required for a group term life plan?

The minimum number of workers required to enrol in a group term insurance policy is 100 members.

Do I get maturity or survival benefit under an employee-sponsored group term plan?

No. By default, group term life insurance policies do not have survival/maturity benefits.

Is my group term life insurance valid after I leave my company?

No. A group term policy coverage ends if you have left the company for another employer. But you can always port the plan from the group into individual insurance (life) policy.

How is the premium of group term life policies calculated?

The premium amount depends on multiple factors such as - salary & grade of employees, the addition of new employees, the exit of group members, age of workers, etc.

Reviews and Testimonials

(4.5/5)
Mohit Desai

Group term life insurance has been 100% beneficial for my team. The CS people at Plum Insurance have done a really good job. 

Rajiv Kahndelwal

The tax benefits of group term insurance plan for my enitre office has helped my company a lot. Good work by Plum Insurance.

Shelly Thomas

I have covered my entire start-up of 50 plus people with a comlete group term plus life insurance coverage plan from Plum Insurance.

Krishna Patil

I like how team plum handled the claims process for one of my employees. It was done entirely on WhatsApp.

DS Prasad

I booked a slot with team plum via talk to an expert option. I immediately got a call, and my decision to buy GTL was made in 10 mins!

Amrit Singh

The best thing about Plum Insurance is its 24x7 chatbot. It instantly connects you to the concerned team members to file a claim.

Sunaina Mohanty

The CX and CS of Plum insurance are awesome. I didn't know how to contact them. Just DMed them on Insta and got a call in 5 mins.

Shivonne Saldahanna

The admin dashboard made by Plum helps in complete tracking of claims for GMC, GTL, GPA and Super Top for the entire office. Cheers.

Arjun Pandit

Being a small startup, we could not go with a GMC plan. Plum gave us a suitable option of monthly health membership benefits.

Dinesh Kulkarni

Offering group life insurance to our long term employees reduced our attrition rate significantly. Kudos to Plum for fast onboarding.

Satayjit Baugh

There was no need for medical check-ups for a GTL plan. Thanks to Plum Insurance for enabling such a stress-free buying process.

Vipul Sinde

Our company was able to save reasonable taxes by buying GTL from Plum Insurance at the last moment. Superior service guaranteed.

Babita Sharma

We bought a master policy (GTL) from Plum Insurance. Amazing onboarding experience. Their CS/CX teams are always available on call.

Vijay Kumar

We got a term life insurance policy from Plum Insurance. Going to go ahead with their renewal. TY to Plum.

SK Sharma

Team Plum Insurance gave us competitive pricing options and the best policy for our young startup with wellness sessions.

Ashwinder Kohli

Buying group term insurance plus group personal accident insurance from Plum was quick and hassle-free. Great CS work.

Ranjit Manke

Our employees got an option to avail super-top. They can directly buy from the self-serving Plum's portal. No hassle. No worries.

Shivan Sharma

Plum Insurance will provide a complete walkthrough of their cool dashboard before you decide. I say go for it.

Gautham Prakash

One of the best in the industry. The entire onboarding process was seamless and quick. Good customer service team.

Madu Patil

Really appreciate the effort of the plum team members. The product demo was really good and self-explanatory.

Bhanu Teja

Plum offers the best group health insurance quotes in the industry for corporates of all sizes and scales. Great work!

Rajesh Raje

Great support from customer success. The team was highly responsive and resolved all of our claim queries point by point.

Mohan Kapoor

Buying a group health insurance plan has never been better. Kudos to team Plum for such a good claims experience.

Jasspreet Singh

With Plum's WhatsApp claims service; I was able to download my health card within seconds. Good and quick process here.

Dhruv Mishra

Apart from the group mediclaim plan, my employees and their dependents benefited from covid-19 vaccination by Plum.

Veerta Mishra

Along with group insurance cover, we also subscribed to the Plum Wellness program. Employee motivation at its peak.

Ravi Sahitya

I'm entirely convinced and happy with the services provided by Plum Insurance. Truly digital experience and onboarding.

Raju Krishnan

I bought the entire mediclaim policy online. I simply filled in all the details and got assisted by the sales team immediately.

Neeta Chakraborty

Our employees got a good number of benefits along with a medical cover. Plum doctor's consultations are really good.

Komal Pandey

I never thought that I would be able to cover my small group of employees. Thanks to Plum Insurance for the GHI plan.

Jason D'Souza

The plans offered by Plum is good and cover most of the pre-existing diseases from day one. I did it all on the Plum App!

Clewyn Mascarenhas

With group health insurance, you can claim tax benefits as an employer, and so can the employees. Thanks to Plum!

Madu Patil

Really appreciate the effort of the plum team members. The product demo was really good and self-explanatory.

Gautham Prakash

One of the best in the industry. The entire onboarding process was seamless and quick. Good customer service team.

Bhanu Teja

Plum offers the best group health insurance quotes in the industry for corporates of all sizes and scales. Great work!

Rajesh Raje

Great support from customer success. The team was highly responsive and resolved all of our claim queries point by point.

Jasspreet Singh

With Plum's WhatsApp claims service; I was able to download my health card within seconds. Good and quick process here.

Mohan Kapoor

Buying a group health insurance plan has never been better. Kudos to team Plum for such a good claims experience.

Veerta Mishra

Along with group insurance cover, we also subscribed to the Plum Wellness program. Employee motivation at its peak.

Dhruv Mishra

Apart from the group mediclaim plan, my employees and their dependents benefited from covid-19 vaccination by Plum.

Raju Krishnan

I bought the entire mediclaim policy online. I simply filled in all the details and got assisted by the sales team immediately.

Ravi Sahitya

I'm entirely convinced and happy with the services provided by Plum Insurance. Truly digital experience and onboarding.

Komal Pandey

I never thought that I would be able to cover my small group of employees. Thanks to Plum Insurance for the GHI plan.

Neeta Chakraborty

Our employees got a good number of benefits along with a medical cover. Plum doctor's consultations are really good.

Clewyn Mascarenhas

With group health insurance, you can claim tax benefits as an employer, and so can the employees. Thanks to Plum!

Jason D'Souza

The plans offered by Plum is good and cover most of the pre-existing diseases from day one. I did it all on the Plum App!