GPA and GTL offer accidental and life coverage respectively. Both are fixed benefit policies aimed at providing financial security to the employee’s family upon the death of the employee.
Coverage for GPA and GTL are as under –
|Group Personal Accident||Group Term Life|
|1. Accidental Death (AD)||1.Death (Natural & Accidental)|
|2. Permanent Total Disability (PTD)|
|3. Permanent Partial Disability (PPD)|
|4. Temporary Total Disablement (TTD)|
|1. Accidental Medical Expenses (AME)||1. Terminal Illness|
|2. Children Education Benefit||2. Critical Illness Rider (CI)|
|3. Mobility Extension||3. Accidental Death Benefit Rider (ADB)|
|4. Last Rites Expenses|
GPA covers only accidental death, however, the scope of GTL policy is broader to cover both normal and accidental death. For example – If an employee is covered under both GPA and GTL insurance, upon his/her death due to an accident both policies will trigger however in the case of natural death only GTL will trigger.
Since both policies are tailor-made, i.e. a corporate can select the benefit structure for its group policy. In case the corporate decides to remove the dual coverage for accidental death, he/she can opt out of the accidental death benefit from the GPA policy. The accidental death benefit is a critical policy benefit, removing this benefit leads to significant savings (approximately 25%-40%) in the cost of GPA policy.
PS – Though Accidental Death Benefit can be offered as a rider in the GTL policy, corporate generally choose the GPA policy for PTD, PPD, TTD, and AME benefits which are not provided under GTL policy.