Group Term Insurance HDFC Life

Quick Overview

Group Term Insurance HDFC Life plans provide cost-effective life cover to a defined group of members and are designed for employers, lenders, and institutions. These plans offer basic financial protection at lower premiums with simplified administration and flexible coverage structures.

However, they should not be relied on for long-term protection. Apart from the 1-year renewable cycles, the terms and conditions are also subject to change at any time. Moreover, since individuals cannot buy these policies, the terms, riders, renewals, etc., might be out of your hands.

Life insurance penetration in India remains low at 2.7% in FY2025, and the gap is widest among working professionals with dependents.

Many assume they’re insured simply because their employer or lender has arranged a group term plan. In reality, that cover may be limited, temporary, or tied to conditions most people only discover too late.

In this blog, we break down HDFC Life’s group term insurance plans, what they cover, who they’re meant for, what happens when you switch jobs or close a loan, and where the gaps lie.

HDFC Term Insurance Plans Specially Designed for Group Term Insurance

1) HDFC Life Group Poorna Suraksha

This plan is commonly used by employers and institutions to provide life cover to members of a group. The death benefit is paid to the nominee in case of the member’s demise. There is also an option to include riders like Accidental Death Benefit (subject to terms), joint life basis, and the Accelerated Critical Illness Benefit option for 29 covered illnesses. You also get the flexibility to choose a premium payment mode between single, limited, and regular pay.

2) HDFC Life Group Term Insurance Plus

This plan is aimed at organizations that require greater flexibility in coverage design, as there is flexibility in the sum assured structure. The premium can be fully paid by the employer or shared with members. You can add riders like Accidental Death Benefit, Total Permanent and Partial Disability Benefit, and Critical Illness Plus.

3) HDFC Life Group Credit Protect Plus

This plan is designed specifically for loan protection and is commonly offered by banks, NBFCs, and housing finance companies. The sum assured is linked to the outstanding loan amount, and the death benefit typically equals the loan balance. It is aimed to protect the borrower’s family from loan liability, and the beneficiary is usually the lender.

For detailed policy wordings, official brochures are available in the Group Insurance section on HDFC Life’s website.

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Features of Group Term Insurance HDFC Life

Single master policy issued to the group owner (employer, lender, or association).
Coverage for a defined group of employees, members, or borrowers. For example, the sum assured for employees can be based on a multiple of their CTC or based on their designation.
Flexible policy administration, allowing addition or deletion of members during the policy year.

Eligibility Criteria for Group Term Insurance HDFC Life

To avail an HDFC Life Group Term Insurance plan, the following eligibility conditions generally apply:

Minimum group size, usually starting from 10 members (may vary by plan)
Members must meet age and employment/membership criteria as defined by HDFC Life

Benefits of Group Term Insurance HDFC Life

Lower Premiums

Due to bulk pricing and actuarial models, the group term insurance plans from HDFC Life have lower premiums as compared to individual term plans.

Simplified Enrolment Process

Members are generally not required to undergo medical examinations up to the “Free Cover Limit”. This limit is dependent on the sum assured and the size of the group.

Tax Benefits for Employers and Members

Death benefits paid to nominees are usually tax-exempt under Section 10(10D) of the Income Tax Act. Premiums paid by employers are treated as a business expense and are typically deductible under Section 37(1), subject to prevailing tax laws.

How to Buy a Group Term Insurance HDFC Life Plan?

Buying a Group Term Insurance plan from HDFC Life is a structured process designed for employers, lenders, and institutions.

The group owner initiates contact with HDFC Life through the official website or the customer helpline. A suitable plan variant is selected, such as a one-year renewable policy or a multi-year single premium option.

The sum assured structure is then defined for members, optional term insurance riders are chosen, and eligible members are added. Once the premium is paid, HDFC Life issues a master policy to the group owner.

Note: Individuals cannot buy these policies.

What Are The Documents Required to Buy HDFC Life Group Term Insurance?

As the policy is issued at a group level, documentation is mainly required from the master policyholder, not individual members.

KYC documents of the employer, institution, or lender
Certificate of incorporation or registration (for companies, trusts, or societies)
Group and member details (such as age, designation, or loan information)
Completed proposal form and declarations
Board resolution or authorization letter, if applicable

Individual members usually do not need to submit medical reports or extensive paperwork, unless specifically required by HDFC Life.

How to Check Your HDFC Life Group Term Insurance Coverage (For Employees and Borrowers)

If you’re an employee or borrower covered under an HDFC Life group term plan, start by asking your HR team or lender for a certificate of insurance or coverage letter. Check the sum assured and how it’s calculated. Also, confirm whether the payout is a lump sum or structured as an income.

Verify your nominee details are correctly updated, and clarify what happens if you leave the organisation or close the loan (whichever is applicable). This is important to understand whether any continuation, conversion, or grace period options are available.

What Is The Group Term Insurance HDFC Life Claim Process?

The Group Term Insurance HDFC Life claim process involves coordination between the nominee, the master policyholder, and HDFC Life.

In the event of a member’s death, the nominee or beneficiary first informs the employer or group owner.
Required documents are submitted and forwarded by the master policyholder to HDFC Life for verification.
Once the claim is assessed and approved, the payout is made as per policy terms.

Note: Claim timelines and documentation requirements may vary depending on the specific plan and policy conditions.

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Ditto's Take on Group Term Insurance HDFC Life

Group term insurance is often mis-sold as a replacement for personal term insurance. While HDFC Life’s group plans can work as an additional benefit or temporary safety net, they are not designed for long-term family protection.

The coverage usually ends when employment or loan tenure ends, and members have no control over policy terms or insurer choice. Moreover, the sum assured is often insufficient for long-term dependents, and loan-linked plans generally only clear outstanding liabilities.

Individual term insurance plans address these gaps by offering long-term protection with higher and more appropriate coverage amounts, regardless of your employment or lending institution. If you’re evaluating HDFC Life in particular, you can read our detailed review of HDFC term insurance and their individual term insurance plans.

Full Disclosure: HDFC Life is a Ditto partner insurer. However, we currently do not deal with or advise on group term insurance plans. Our recommendations are limited to personal, individual (retail) term insurance and health insurance products. This article is intended purely for informational purposes.

If you'd like to understand how we evaluate insurers or plans, you can check out Ditto's Cut.

Frequently Asked Questions

Is Exide Life Insurance a Good Company?

Exide Life Insurance has now merged with HDFC Life. HDFC Life is a solid insurer with great performance across key operational metrics. For more information, you can check out our detailed review of HDFC Life insurance

What is the HDFC Life Group policy?

An HDFC Life Group policy is a single master insurance policy issued to an employer, lender, or institution to provide life cover to a defined group of members.

What is a group term insurance policy?

A group term life insurance policy provides life insurance coverage to members of a group under one contract, usually at a lower cost than individual plans.

What is GTL in HDFC Life?

GTL in HDFC Life stands for Group Term Life insurance, which offers pure life cover without maturity benefits. It pays a lump sum to the nominee or beneficiary if a covered member dies during the policy term.

What are the optional add-ons in group term insurance HDFC Life?

HDFC Life offers multiple rider options, including the Group Critical Illness Plus Rider, which provides coverage for 25+ major critical illnesses. Along with that, you can also choose disability-related riders, designed to offer financial support in the event of permanent disability.

Last updated on: 14 Feb, 2026