As part of the Employee Medical Insurance,Group Term Life coverage offered to a group of people. This coverage will provide a benefit to the beneficiaries if the covered individual dies during the defined covered period. As with other types of group benefits, Group Term Life insurance is generally cheaper than comparable individual policy coverage.

There are different ways to determine the level of coverage for the individual employee. The common practice by company’s HR is to use number of months or times of the employee monthly or annual salary.

For example

Miss Jeannie Lim earns $3000 per month or $36,000 per year, The HR may use 2x, 3x, of the annual salary as the total sum insured for the Group Term Life benefit.

In today’s competitive market, insurance companies often include added benefits in a Group Term Life benefits.

For Example

• Extended Death Benefit (EDB) - In the event the employer terminates the employee’s employment due to medical grounds, the Group term Life insurance policy (Death Benefit) in respect of the insured member shall be extended for a period of 12 months beginning from the date of termination of the employment.

• Family Income Benefit - Upon Death or Total Permanent Disability of the insured employee, an additional monthly benefit of 1% of the Sum Assured is payable for a period of 12 months.

Most Group Term Life benefit will exclude suicide, sane or insane, within 1st year from the effective date of coverage commence.