Life cover & benefits
How much group term life cover should employees get?
Most employers set group term life cover as a multiple of salary, or a flat amount for everyone. A multiple follows earnings, but leaves the lowest-paid with the thinnest cover, so a sensible minimum alongside it is worth setting. Above the free cover limit, the insurer needs medicals, and cover can stay capped until they are done.
In short
- Commonly a multiple of salary or a flat amount.
- Add a floor so the lowest-paid are properly covered.
- Track medicals for everyone above the free cover limit.
- GTL sits above EDLI, which tops out at ₹7 lakh.
Salary multiple or flat amount?
A salary multiple follows earnings; a flat amount treats everyone equally. Many employers use a multiple, sometimes varying by grade. The choice shapes who is well covered and who is not.
Why do the lowest-paid need a floor?
Because a flat multiple gives them the least, and their families can least afford a gap. Setting a meaningful minimum sum insured alongside the multiple fixes that, and it is a design choice made when the policy is set up.
What is the free cover limit trap?
Above the free cover limit, cover can stay capped until the insurer’s medicals are complete. Senior staff on high multiples are the most exposed. Our page on the free cover limit explains how to close it.
How does GTL fit with EDLI?
EDLI is the statutory floor, capped at ₹7 lakh; GTL is the employer’s own cover above it. Where GTL beats EDLI for every member, an EDLI exemption may be possible. Our EDLI page explains the conditions.
Frequently asked questions
How much group term life insurance should employers provide?
Commonly a multiple of salary or a flat amount, ideally with a minimum so the lowest-paid are properly covered.
What is the free cover limit in group term life?
The amount up to which no medicals are needed; above it, cover can stay capped until medicals are complete.
Is group term life in addition to EDLI?
Yes. EDLI is the statutory floor; GTL is the employer's own cover above it.
What happens when you talk to us
A 20-minute video call with a Growth Advisor. No obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You’ll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help, even if you never become a client.
20 minutes with a Growth Advisor. No obligation.
A note on this page. Everything here is general information, not insurance, legal, financial or tax advice, and nothing is an offer. No insurer or product is named or recommended. What any policy covers depends on its own wording and schedule. For advice about your situation, talk to us.