Term life (GTL)
A lump sum for the family at home
Group term life insurance pays a lump sum to an employee’s family if they die while covered. Most plans also pay if the employee becomes totally and permanently disabled. Every employee on the plan gets the same baseline of protection, whatever cover they hold on their own.
What it is
For the people who count on them
If an employee dies during the policy year, from illness or an accident, at work or not, the insurer pays the sum insured. Many plans pay the same sum if the employee becomes totally and permanently disabled and can no longer work.
You choose the sum insured. It can be one flat amount for everyone, such as S$50,000 to S$200,000, or a multiple of each employee’s salary.
What it usually pays for
Death, disability and more
Death
The sum insured, if the employee dies while covered, whatever the cause, subject to the plan’s exclusions.
Total and permanent disability
The same sum, usually paid once the employee is unable to work ever again and the disability has lasted a set period, often six months.
TPD explainedCritical illness, if added
Many insurers let you add group critical illness cover to term life, paying part or all of the sum early on diagnosis of a listed illness.
See critical illness coverChoosing the sum insured
Flat sum or salary multiple
Both are common. The right one depends on your team and how simple you want it to be.
| Flat sum | Multiple of salary | |
|---|---|---|
| How it works | Everyone gets the same amount, such as S$100,000 | Each person gets a multiple of pay, such as 24 or 36 months’ basic salary |
| Running it | Easy to explain and budget | Needs salary data, updated at each renewal |
| Fairness | The same protection for everyone | Protection grows with income |
| Health declarations | Rarely needed if the sum is within the free cover limit | Higher earners may go past the free cover limit and need to declare |
| Often suits | Small teams and first-time buyers | Larger teams with a range of seniority |
Is term life right for your team?
A good fit if
- Your staff have families or dependants who rely on their income
- You want every employee protected without medical checks, within the free cover limit
- You want to add critical illness or personal accident cover alongside it
- You’d like a benefit that is easy to explain in an offer letter
In practice
From enrolment to claim
01
Enrol the team
Send the insurer a list of employees with their dates of birth, and salaries if the sum is based on pay. Cover within the free cover limit needs no health questions.
02
Keep the list current
Add joiners and remove leavers as they come and go. Most insurers adjust the premium for these changes, often with a reconciliation at the end of the policy year.
03
If the worst happens
The company submits the claim with the documents the insurer asks for, and we can help you through it. The insurer pays out once the claim is approved.
Questions about term life
Term life, answered
Usually not. Each insurer sets a free cover limit, and cover up to it is given without health questions. Above it, often S$150,000 to S$200,000 on SME packages, an employee may need to complete a health declaration.
It covers death from illness or accident, at work or elsewhere, subject to the policy’s exclusions. Common ones include suicide within the first year of cover and, for small groups, some pre-existing conditions for a period.
No. Term life premiums are exempt from GST, unlike most health covers.
Their cover usually ends when they leave your company. Some insurers let them convert to a personal policy within a short window, and we can tell you which do.
On the SME packages we compare, employees can usually join up to about age 69 or 70, and cover can continue to about 75 at renewal, sometimes for the death benefit only.
Yes, if the sums follow clear categories, such as job grade, and everyone in a category is covered on the same basis.
Compare term life across insurers
Tell us about your team. We lay out plans from our panel of 14 insurers side by side and send exact quotes within the next working day. Our advice is free: the insurer pays our commission.