If there is one benefit in India that delivers massive impact but receives minimum attention, it is Group Term Life Insurance (GTLI).
For years, corporate India has obsessed over health insurance premiums, OPD benefits, maternity caps, and cashless networks.
But very few HR leaders pause to ask a simple question:
“If something happens to an employee tomorrow, is their family financially protected?”
In most companies, the uncomfortable truth is: No.
India’s Protection Gap: The Story No One Talks About
India has an 83% protection gap (Swiss Re).
Translated into simple language:
For every ₹100 a family needs when the breadwinner dies, they have only ₹17.
This means:
• Most households will fall into debt within months
• Children’s education gets disrupted
• Family assets get sold
• Spouses struggle to maintain lifestyle
• Long-term financial stability collapses
And there’s a financial reality HR must understand:
Health insurance pays for treatment.
Term life pays for survival.
One protects the patient.
The other protects the family.
India needs both — desperately.
Why MNCs in India Still Skip GTLI
Interestingly, global organizations with excellent benefit philosophies often miss this in their Indian subsidiaries.
Why?
1. “Global HQ doesn’t mandate it.”
This is the #1 reason.
But global HQs don’t understand the Indian context:
• Large joint families
• Single-income households
• High dependency ratio
• Low personal insurance penetration
• High education + healthcare inflation
What is optional in Europe becomes essential in India.
2. “Budgets are tight.”
GTLI is actually one of the cheapest benefits on life in India.
For the cost of one team lunch, you can insure an employee for ₹20–50 lakhs.
3. “We already offer health insurance.”
This is the biggest misconception.
Health insurance ≠ Life protection.
A company that offers only health insurance is covering only one side of risk.
What Happens When GTLI Is Missing?
When HR skips GTLI, two things happen:
1. Employees remain underinsured.
Most Indian employees never buy adequate personal term insurance because:
• They underestimate their needs
• Long paperwork
• Medical tests
• High premiums post age 40
• Lack of awareness
So you automatically have a vulnerable workforce.
2. Employer responsibility rises during crises.
Every HR leader knows this:
When an employee passes away, the family turns to the employer, not the insurer.
And HR is forced into:
• emergency funds
• ad-hoc donations
• leadership-level requests
• compensation extensions
It becomes a moral obligation — and a reputational moment.
GTLI solves this cleanly, elegantly, and affordably.
The Smart Indian Model: What HR Should Actually Do
The most progressive MNCs in India are adopting a tiered GTLI structure that works beautifully:
1. ₹20–50 lakh GTLI Base Cover (Employer Paid)
This ensures every employee’s family gets immediate financial support.
2. Voluntary Buy-Up up to ₹1–2 crore
Employees can upgrade at their own cost — no underwriting, no medicals.
This is especially useful for:
• mid-career employees
• parents with young children
• single-income families
• employees with loans
This is a huge financial advantage for employees.
How Much Does It Cost? Much Less Than HR Expects.
Here’s the part HR seldom believes until they see the quote:
A ₹25–50 lakh cover can cost as low as ₹150–350 per employee per month, depending on demographics.
That’s:
• cheaper than OPD
• cheaper than wellness
• cheaper than many admin benefits
• far higher impact on family security
In fact, GTLI is often less than 1% of total CTC, but delivers 100% protection.
Why GTLI Builds Loyalty Like No Other Benefit
When an employee sees:
• their spouse secured
• their kids’ future protected
• their family covered
They feel something far deeper than benefit satisfaction.
They feel gratitude.
And gratitude drives loyalty.
This is why companies that introduce GTLI see:
• higher retention
• better employer branding
• stronger trust in HR
• lower dissatisfaction during crises
GTLI becomes part of your company’s moral brand.
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For years, corporate India has obsessed over health insurance premiums, OPD benefits, maternity caps, and cashless networks.
But very few HR leaders pause to ask a simple question:
“If something happens to an employee tomorrow, is their family financially protected?”
In most companies, the uncomfortable truth is: No.
India’s Protection Gap: The Story No One Talks About
India has an 83% protection gap (Swiss Re).
Translated into simple language:
For every ₹100 a family needs when the breadwinner dies, they have only ₹17.
This means:
• Most households will fall into debt within months
• Children’s education gets disrupted
• Family assets get sold
• Spouses struggle to maintain lifestyle
• Long-term financial stability collapses
And there’s a financial reality HR must understand:
Health insurance pays for treatment.
Term life pays for survival.
One protects the patient.
The other protects the family.
India needs both — desperately.
Why MNCs in India Still Skip GTLI
Interestingly, global organizations with excellent benefit philosophies often miss this in their Indian subsidiaries.
Why?
1. “Global HQ doesn’t mandate it.”
This is the #1 reason.
But global HQs don’t understand the Indian context:
• Large joint families
• Single-income households
• High dependency ratio
• Low personal insurance penetration
• High education + healthcare inflation
What is optional in Europe becomes essential in India.
2. “Budgets are tight.”
GTLI is actually one of the cheapest benefits on life in India.
For the cost of one team lunch, you can insure an employee for ₹20–50 lakhs.
3. “We already offer health insurance.”
This is the biggest misconception.
Health insurance ≠ Life protection.
A company that offers only health insurance is covering only one side of risk.
What Happens When GTLI Is Missing?
When HR skips GTLI, two things happen:
1. Employees remain underinsured.
Most Indian employees never buy adequate personal term insurance because:
• They underestimate their needs
• Long paperwork
• Medical tests
• High premiums post age 40
• Lack of awareness
So you automatically have a vulnerable workforce.
2. Employer responsibility rises during crises.
Every HR leader knows this:
When an employee passes away, the family turns to the employer, not the insurer.
And HR is forced into:
• emergency funds
• ad-hoc donations
• leadership-level requests
• compensation extensions
It becomes a moral obligation — and a reputational moment.
GTLI solves this cleanly, elegantly, and affordably.
The Smart Indian Model: What HR Should Actually Do
The most progressive MNCs in India are adopting a tiered GTLI structure that works beautifully:
1. ₹20–50 lakh GTLI Base Cover (Employer Paid)
This ensures every employee’s family gets immediate financial support.
2. Voluntary Buy-Up up to ₹1–2 crore
Employees can upgrade at their own cost — no underwriting, no medicals.
This is especially useful for:
• mid-career employees
• parents with young children
• single-income families
• employees with loans
This is a huge financial advantage for employees.
How Much Does It Cost? Much Less Than HR Expects.
Here’s the part HR seldom believes until they see the quote:
A ₹25–50 lakh cover can cost as low as ₹150–350 per employee per month, depending on demographics.
That’s:
• cheaper than OPD
• cheaper than wellness
• cheaper than many admin benefits
• far higher impact on family security
In fact, GTLI is often less than 1% of total CTC, but delivers 100% protection.
Why GTLI Builds Loyalty Like No Other Benefit
When an employee sees:
• their spouse secured
• their kids’ future protected
• their family covered
They feel something far deeper than benefit satisfaction.
They feel gratitude.
And gratitude drives loyalty.
This is why companies that introduce GTLI see:
• higher retention
• better employer branding
• stronger trust in HR
• lower dissatisfaction during crises
GTLI becomes part of your company’s moral brand.
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