Close Button Close Button
X
NRI Services Helpline

Calling FromPhone Number
Calling us from INDIA18002097272 (Toll Free)
Rest of the World+912067871700
(Call charges apply)

Group Term Life Insurance

Getting a group term insurance plan can be helpful for all individuals and groups alike. These term plans offer insurance to a group of people under a single policy. They are also extendable to large groups such as companies, NGOs, etc. With such plans, every member of the policy can be sure about their financial future.

Get in Touch to Know More
I agree and consent to the Terms & Conditions, Privacy Policy
Get Your Life Goals, Done!

Tailored Life Insurance Solutions for your long-term Life Goals.

Written ByPalak Bagadia
AboutPalak Bagadia
LinkedIn Icon
Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.
Reviewed ByRituraj Singh
AboutRituraj Singh
LinkedIn Icon
Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 13th June 2025
Modified on: 17th June 2025
Reading Time: 15 Mins
Share

What Is Group Term Life Insurance?


Group Term Life Insurance is a term insurance plan designed to provide life cover to a group of people under a single master policy. Such plans can include employees of a company, NGO members, and borrowers of a lending institution. With this policy, you can benefit from a uniform or graded sum that is assured for all members and is cost-effective for the policyholder. It ensures financial protection to the nominee in case of the insured member’s untimely death during the policy term. Employers often use it as a valuable employee benefit.


Features of Group Term Life Insurance Plans


Some of the salient features of group-term life insurance plans are as follows –


  • The policies are usually issued for a year. Once the coverage nears the maturity date, the policy can be renewed.
  • Usually, pure-term insurance coverage is offered under group-term life insurance plans. On maturity, nothing is paid.
  • Some plans might offer optional riders. If the group chooses the rider, an additional premium would be required.
  • The premiums for group term plans are affordable, and the policy also covers older individuals who might not be eligible for an individual term life insurance plan.

Who Is Eligible for Group Term Life Insurance Policies?


A group term life insurance policy can be taken by eligible groups for their members. Some groups which are eligible for the coverage are as follows –


  • Employer-employee groups:


    Employers can take a group term life insurance policy for their employees.


  • Lender-borrower groups:


    Credit institutions who offer loans can also take a group term life insurance policy on the life of their borrowers. Usually, in such cases, a credit life insurance policy is taken wherein the sum assured reduces in tandem with the reduced loan amount. If the borrower dies before repaying the outstanding loan, the benefit paid under the group term life insurance policy is used to repay the outstanding loan1.



Benefits of Group Term Life Insurance Plans


  1. Automatic Coverage for All Members


    Group term life insurance provides life cover to all members simply by being part of the group.


  2. Helps in Gratuity Management


    Employers can use the group policy to build a fund for future gratuity payouts, making financial planning for employee benefits more structured and efficient.


  3. Tax Benefits


    You can enjoy the tax benefits with this policy. It is important to know that the death benefit you get under the policy is tax-free under Section 10(10D) of the Income Tax Act, 1961 subject to certain conditions.


  4. Customisable Coverage


    The plan can be customized with add-ons such as accidental death benefit, repatriation allowance, providing broader support beyond the base cover.


  5. No Medical Tests Required


    Under this policy, there is no need for any medical check-ups. This can be very helpful for you.


  6. Cost-Effective Solution


    Group plans are affordable, making them a budget-friendly option for both employers and members.


Can you opt for another Term Insurance Plan Alongside the Group Plan?


Do note that you can also opt for an individual term life insurance policy alongside the group plan. This way, you can decide on a different maturity period so different phases of your life are covered. Sometimes, death benefits provided by a group policy may not be adequate to cover all the needs of your loved ones. In such a scenario, you could opt for an individual plan to make the death benefit substantial. Note that such policies exist only until you are part of the group and as per the conditions specified therein.


How Does a Group Life Insurance Plan Work?


When a group decides to opt for the group life insurance policy, it approaches the insurer and specifies its requirements. The insurer assesses the group’s composition and other details and then grants the coverage. Members who belong to the group get covered under the policy. A single policy is issued called the Master Policy, which insures all the members. Under employer-employee GTL policy, the sum assured of the members can be increased during the term of the policy, depending on the member’s position in the group, through an endorsement and with additional premiums.


The premium for the policy is collected from the group. It can be paid entirely by the group, its members or jointly by the group and its members. However, the insurance company collects a single premium from the group.


Thereafter, if the insured member passes away during the policy tenure, the sum assured is paid to the member’s nominee. The coverage for other members is not affected by payment of sum assured to the nominee of deceased. It continues till the policy tenure.


If a new member joins, he/she can be included in the policy at any time of the year, through an endorsement.


Conclusion


Group term life plans are convenient and you get the coverage and benefits of the policy if the organisation you are working for provides the same. They also offer tax benefits and comes with affordable premiums because of the presence of a group.


FAQs


  1. What is the minimum sum assured under a group term life insurance plan?


    In India, a group term life insurance plan typically offers minimum coverage that ranges from ₹10,000 per person. This amount can change depending on the insurer and the specific group involved. Many insurance companies offer flexible options, allowing employers or group administrators to choose a sum that meets their needs. However, the guaranteed amount can change depending on factors like the size of the group, the average age of its members, their occupations, and the terms agreed upon with the insurer.


    Note:n case of EDLI, the minimum sum assured will be as per Employee’s Deposit Linked Insurance


    Scheme, 1976, which would be amended in accordance to the Government directions from time to time


  2. What is the maximum age to enroll in a group term life insurance plan?


    The maximum age to enroll in a group term life insurance plan can be 79 years for EE (provided member is in active service on date of entry)& 69 years for NEE.


  3. What is the minimum age required to join a group term life insurance plan?


    You must be 14 years old to join a group term life insurance plan. This way, you can be sure that members are legally eligible and able to understand the insurance terms.


  4. What is the tenure of a group term life insurance plan?


    Group term life insurance has a 1 year term. The purpose of group term life insurance is to provide short-term life cover to members of an organization or group, with the option to renew annually. This flexibility allows employers or group administrators to revise terms or reissue the policy every year in light of current needs. Some special plans may offer longer than 1 year terms if required.


  5. Should I buy separate term insurance if my employer provides group cover?


    Yes, getting personal term insurance is a smart idea even if your employer offers group coverage. Group term insurance typically wraps up when you leave your job and might not provide enough coverage for your family's needs. On the other hand, a personal term plan puts you in the driver's seat, offering greater coverage and long-term protection. It's a smart way to secure your family's financial future, even after employment ends.


  6. What is the death benefit in a group term life insurance plan?


    The death benefit is the guaranteed amount that the insurer pays to the designated beneficiary if the insured individual passes away while the policy is active. This financial support can help the family navigate through difficult times. The benefit amount depends on the plan chosen and may be uniform or linked to the member’s salary or role in the organisation.


  7. Is a medical test required to join a group term life insurance plan?


    Usually, group term life insurance plans do not require a medical test for enrollment, especially for younger or healthy members. This makes it easy and hassle-free to get insured. However, the insurer may ask for a medical check-up if the coverage amount is very high or the member has known health risks. Always check the policy terms before joining.


  8. Can I get money back on my group term life insurance plan?


    Money-back benefits are typically not provided by group term life insurance. It is a pure protection plan that is intended to give your family financial support in case of any unforeseen circumstances.


  9. Can I keep my group term insurance if I leave my job?


    Usually, group term life insurance coverage ends once you leave the job or organisation. Some insurers may offer the option to convert the policy into an individual plan, but this is not guaranteed. If you want to continue your life cover after exiting the group, it’s a good idea to ask your employer or insurer about portability options.


  10. Do group term life insurance plans offer maturity benefits?


    No, group term life insurance policies don’t provide maturity benefits. They’re designed only as protection plans, which means they just pay out if the insured individual passes away during the term.


  11. Are rider options available with group term life insurance?


    Yes, many group term life insurance policies include optional riders. The most common riders include critical illness cover, accidental death benefit, and total permanent disability cover. They provide more scope of protection at a small cost, and you can generally tailor them to the group’s needs.


Bajaj Allianz Life Term Insurance with tax benefit up to Rs 46,800

Buy Term Insurance
Reshot Illustration Discover Mountain
Bajaj Allianz Life Term Insurance with tax benefit up to Rs 46,800*
99.23% Claim Settlement Ratio~
Premium Holiday1
Buy Term Insurance

Disclaimer
BJAZ-OT-EC-08288/24

close

New Term Plan Launched!

₹1 Cr Term Plan @₹15/ Day^

Get upto16% Discount on 1st Year Premium3

calendar_icon

Are you an NRI?

Select Country

I agree and consent to the Terms & Conditions, Privacy Policy

^,3T&C Apply

Gender

Tobacco/Nicotine

Are you diabetic?

I agree and consent to the Terms & Conditions, Privacy Policy

^,3T&C Apply

X
Disclaimer

*Above illustration is for Bajaj Allianz Life eTouch II - A Non-Linked, Non-Participating, Individual Life Insurance Term Plan (UIN:116N198V01) considering Male aged 25years | Non-Smoker | Policy Term(PT)– 30 years | Premium Payment Term (PPT)– 30 years | Sum Assured opted is Rs.1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 5,092. 2nd Year onwards premium Rs. 5,520. Total Premium Rs. 1,65,172 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage: 40, Income Payout Percentage: 60). Income payout instalment opted for 40 years | Premium shown above is inclusive of Online Discount only, no other discounts have been considered and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale.

##Tax benefits as per prevailing Section 10(10D) and Section 80C (under old tax regime) of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

**5% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. 5% Discount for salaried customers, applicable only on first year’s premium. 6% Discount on online purchase is available for regular premium payment and limited premium payment frequency on first year's premium.

$Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium means total of all the premiums paid under the base product, excluding any extra premium and taxes, if collected explicitly.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

X
Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any Call made, including via Voice over Internet Protocol & WhatsApp, SMS or WhatsApp messages, in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

X
Disclaimer

Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


Term Insurance Guide

Long term investment plans - What Are Their Benefits?

A suitable financial plan may be defined by its components. Amongst other things, one aspect, it may be incomplete without, is a steady amount of investment.

Read More
Long term investment plans - What Are Their Benefits?

A suitable financial plan may be defined by its components. Amongst other things, one aspect, it may be incomplete without, is a steady amount of investment.

Read More
Long term investment plans - What Are Their Benefits?

A suitable financial plan may be defined by its components. Amongst other things, one aspect, it may be incomplete without, is a steady amount of investment.

Read More
Long term investment plans - What Are Their Benefits?

A suitable financial plan may be defined by its components. Amongst other things, one aspect, it may be incomplete without, is a steady amount of investment.

Read More
Disclaimers:
Plus Symbol
Minus Symbol

Tax benefits as per prevailing Section 80C under old tax regime and Section 10(10D) of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy     

BJAZ-WEB-ECNF-15574/25

X
Disclaimer

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

X
Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

X
Disclaimer

%%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

@Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium amount is total of all the premiums received, exclusive of extra premium, rider premium and GST & /any other applicable tax levied, subject to changes in tax laws
Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

X
Disclaimer

Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


X
Disclaimer

*Above illustration is for Bajaj Allianz Life eTouch II - A Non-Linked, Non-Participating, Individual Life Insurance Term Plan (UIN:116N198V01) considering Male aged 25years | Non-Smoker | Policy Term(PT)– 30 years | Premium Payment Term (PPT)– 30 years | Sum Assured opted is Rs.1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 5,092. 2nd Year onwards premium Rs. 5,520. Total Premium Rs. 1,65,172 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage: 40, Income Payout Percentage: 60). Income payout instalment opted for 40 years | Premium shown above is inclusive of Online Discount only, no other discounts have been considered and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale.

##Tax benefits as per prevailing Section 10(10D) and Section 80C (under old tax regime) of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

**5% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. 5% Discount for salaried customers, applicable only on first year’s premium. 6% Discount on online purchase is available for regular premium payment and limited premium payment frequency on first year's premium.

$Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium means total of all the premiums paid under the base product, excluding any extra premium and taxes, if collected explicitly.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

X
Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any Call made, including via Voice over Internet Protocol & WhatsApp, SMS or WhatsApp messages, in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

close
Ask for an Agent
Sign up for personal visit and tailored advice from our expert agents

Claim Settlement Ratio of 99.29%~