Group life insurance
Life cover for all the members of a group under one policy, commonly an employer covering its staff or a lender covering its borrowers, with cover that moves as the group changes.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- A lump sum to the nominee on the death of a covered member
- Death from illness or accident, as the master policy defines
- Optional accidental death and disability benefits
- Optional critical illness rider for members
- Members who join or leave during the policy year, handled by endorsement
Key features
- One master policy issued to the group, with members listed in a schedule
- Sum assured on a flat basis, or graded by grade, salary or loan outstanding
- Simplified or free-cover underwriting up to the limit the insurer allows, with medical evidence above it
- Additions and deletions during the year, with premium adjusted pro rata
- Annually renewable, and priced on the group's profile and claims experience
- Minimum group size set by the insurer: [GROUP SIZE MINIMUM]
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us about the risk
Send us the member list with ages and sums assured, and the benefit basis you want to use.
Underwriting details
An advisor collects the information insurers need to price the risk, and flags anything missing.
Compare quotes
We ask our partner insurers to quote, and put the cover, conditions and premium side by side.
Proposal & policy
Pick a quote, complete the proposal form and KYC, and the insurer issues the policy.
Group life insurance: FAQs
Does group life cover continue after an employee leaves?
No. Cover under the employer's policy ends when membership ends, which is why a personal term plan is worth holding alongside it.
Is medical evidence needed for every member?
Usually not. Insurers allow a free-cover limit for the group, and only members with cover above it, or with declared conditions, are underwritten individually.
How is the sum assured decided?
The group chooses the basis: a flat amount for everyone, a multiple of salary, grade-wise amounts, or, for lenders, the outstanding loan. The insurer confirms what it will accept.
Who receives the claim amount?
The member's nominee as recorded in the policy, except where the policy is assigned to a lender for a loan balance. Keeping nominations up to date avoids delays.