GTL is the simplest protection cover a company can give. If an employee dies while they are covered, the insurer pays the sum insured to their nominees or estate. Most plans also pay on total and permanent disability (TPD), within age limits set by the insurer.
The sum insured is either a flat amount for everyone, such as S$100,000 each, or a multiple of salary, such as 24 or 36 months of basic pay. Flat amounts are simpler to run; salary multiples keep cover in step with each person’s income.
Cover lasts as long as the employee is on the plan and ends when they leave the company. Above a certain sum insured, called the free cover limit, the insurer asks for a health declaration.
Group term life is usually exempt from GST, and it is often the base that group critical illness and personal accident cover attach to.