What is the full form of GTL in Insurance?
The GTL full form in insurance is Group Term Life Insurance Scheme. Group term life insurance is a sort of temporary life insurance in which a single contract is issued to cover several persons. The most prevalent group is a firm in which the contract is granted to the employer, who subsequently provides coverage to employees as a perk. Many organizations offer a basic level of group coverage at no cost, as well as the opportunity for employees to purchase extra coverage for themselves, their wives, and their children.
How does a group term insurance work?
Group life insurance plans are often written as term insurance and are available to employees who meet qualifying criteria, such as being a permanent employee who has been with the company for at least 30 days. Group term life insurance coverage can be changed for qualifying life events or during open enrollment.
Advantages of group term insurance:
Group term insurance is often inexpensive, particularly for young people. Participants are typically not required to go through an underwriting procedure, as all eligible employees are automatically insured. Unlike individual term insurance policies, which typically lock in a rate for 20 to 30 years, most group plans feature rate bands in which the cost of insurance automatically increases in increments.