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Written By
Fathima Tabasum
Fathima Tabasum
Senior Marketing Associate
Fathima defines Digit's voice in life insurance with her strong command of language. Her creative, clear writing and research skills simplify complex concepts and build trust and engagement.
Reviewed By
Ashok Manwani
Ashok Manwani
Vice President - Products
Ashok is an insurance professional with extensive experience in product development and management. In his role at Digit, he focuses on creating innovative life insurance solutions tailored to meet diverse customer needs.
Digit Group Term Life Insurance Policy
What is the Most Important Asset of an Organisation?
It’s the employees who work tirelessly to contribute to the company’s success. As a responsible employer, ensuring their financial security is crucial. One meaningful way to show this commitment is offering a group term life insurance plan.
Group term insurance plays a crucial role in protecting employees and their families. It offers a vital financial safety net, ensuring that their loved ones are supported in the unfortunate event of an employee's passing.
Table of Contents
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Overview of Group Term Life Insurance by Digit Life
Here's a quick overview of the key features and options available with Digit’s Group Term Life Insurance, offering a range of customizable benefits and coverage options.
What is a Group Term Life Insurance?
What is a Group Term Life Insurance?
- Group Term Life Insurance is a type of term insurance policy that covers a group of individuals under a single plan. Typically, employers offer this coverage to their employees, ensuring that a Sum Assured is paid to the nominee if the employee passes away during the policy term.
- In a Group Term Insurance plan, the employer is the policyholder, while the employee is the life insured. Should the employee pass away during the policy period, this insurance provides financial support to their family.
- Digit Group Term Life Insurance is a non-linked, non-participating pure risk plan designed to offer life coverage to insured members. In the event of an unfortunate loss, it ensures financial security for their families. This flexible and customizable plan allows both employers and employees to tailor it to their needs.
How Does a Group Term Life Insurance Plan Work?
A Group Term Life Insurance plan provides life coverage to a group, typically employees of a company, by pooling resources to offer financial protection in the event of an employee's death. Here’s how it works:
Group Formation
At Digit, our Corporate Portal makes group management simple. Adding or removing members during the policy year is easy and can be done by the company.
Master Policy
The employer purchases a Master Policy from the insurance provider. This policy outlines the coverage details, sum assured, premium payment terms, and eligibility criteria.
Premium Payment
With Digit, you can pay premiums as per your preference- Single, Monthly, Quarterly, Half-Yearly, or Annually.
Coverage and Sum Assured
Each employee covered is assigned a sum assured, which is the amount paid to the beneficiary in case of the employee's death.
Renewal
Group Term Life Insurance typically lasts one year and must be renewed annually. The premium may change based on certain factors.
Death Benefit
In the unfortunate event of an employee's death, the sum assured is paid to the nominee or beneficiary. Digit offers payout options, either as a lump sum or in regular payments, based on preference.
Portability and Continuity
Digit’s Group Term Insurance allows employers to design a tailored plan with options for benefits, coverage, and sum assured. However, the coverage cannot be transferred when an employee leaves the organization
What's Great about Group Term Life Insurance by Digit Life?
What's Great about Group Term Life Insurance by Digit Life?
1. Hyper Customizable
1. Hyper Customizable
- Choose from inbuilt optional benefits like Accidental Death, Terminal Illness, and Critical Illness coverage.
- Add additional coverage such as Spouse Coverage or Voluntary Insurance to cover expenses like funeral costs, credit card bills, or child education.
- Opt for Flexible Payouts such as lump sum payout or a regular income option. The regular income benefit allows you to select how long payments continue, up to retirement, a child's specific age, or a predetermined period.
2. Tech Enabled, Smooth Processes
2. Tech Enabled, Smooth Processes
- Hassle-free processes with minimal online documentation
- Claims settled within 72 hours for quick support
- Global coverage for groups based in India
- 99% of cases require no medical check-up
- No "Active at Work" clause during renewals
3. Aligned with Your Business
3. Aligned with Your Business
- Opt for the regular pay option and lock in your premiums for up to 3 years, ensuring stability and predictability in your financial planning.
- In case of favorable claims or long-term contracts, part of the premium is refunded to the master policyholder, enhancing a sense of partnership and profit sharing.
- Choose from annual, half-yearly, quarterly, or monthly premium payment frequencies, making it easier to manage cash flow efficiently.
What's Covered and Not Covered in Digit’s Group Term Life Insurance?
What's Covered
The primary coverage options included in Digit's Group Term Life Insurance provide essential financial protection for insured members are as follows:
Death Benefit: Provides financial protection for insured members in the event of death.
Terminal Illness Benefit: For members diagnosed with a terminal illness that is expected to lead to death within six months.
Critical Illness Benefit: Specific critical illnesses, with options for plans that protect against 14, 20, or 34 different illnesses.
Accidental Death Benefit: In the event of death resulting from an accident.
Accidental Total and Permanent Disability Benefit: For members who experience total and permanent disability due to an accident.
Disappearance and Drowning Coverage: Treats cases where the insured member's body cannot be located due to disappearance or drowning as accidental death.
What's Not Covered
Understanding the exclusions in Digit’s Group Term Life Insurance policy is crucial to clarify what is not included in the coverage. Here are the critical exclusions to consider:
Suicide: Claims arising from suicide are not covered if they occur within the first 12 months from the date of policy commencement or reinstatement.
Pre-existing Conditions: Claims related to pre-existing conditions not disclosed during the application process are excluded from coverage.
Participation in Hazardous Activities: Engaging in hazardous activities, such as racing or flying, will result in denied claims if injuries or death occur while participating in these activities.
War and Related Events: Claims arising from war, invasion, or any conflict-related events, including hostilities or acts of foreign enemies, are not covered.
Self-inflicted Injuries: Any claims resulting from self-inflicted injuries or attempts at self-harm are excluded from the policy.
Substance Abuse: Claims related to injuries or conditions arising from the use of drugs, alcohol, or any form of substance abuse are not covered.
Criminal Activities: Claims resulting from criminal or unlawful acts are excluded from coverage under this policy.
Medical Exclusions: Any medical condition or treatment explicitly mentioned as excluded in the policy terms will not be covered.
Waiting Period: No benefits will be payable if a covered critical illness occurs within the initial waiting period of 90 days from the start of coverage.
Non-disclosure of Material Facts: If any information provided in the Proposal Form or related documents is found to be incorrect, misleading, or fraudulent, the insurer will not be liable under the insurance contract.
Features and Benefits of Group Term Life Insurance for Employers
Understanding the features and benefits of Group Term Life Insurance can help employers enhance their employee offerings and create a more supportive workplace.
Tenure
Group Term Life Insurance policies typically have a tenure of one year and require annual renewal, which allows flexibility to adjust coverage based on the group's needs.
Premium Payment
Premiums are usually paid directly by the employer, with options for employees to contribute through salary deductions. This makes it manageable for budget considerations.
Master Contract
A Group Term Insurance Policy is a master contract that automatically includes all eligible employees, providing immediate coverage without individual underwriting.
Hassle-Free Administration
Employers can easily manage the policy by adding or removing members as employees join or leave the organization, reducing administrative burdens.
Employee Retention
Offering Group Term Life Insurance enhances employee sentiment, providing financial security that helps with retention efforts.
Cost-Effective
Group Term plans are generally more affordable than individual plans, offering high coverage at a lower cost.
Tax Benefits
Premiums paid for Group Term Insurance can earn tax benefits under Section 37(1) of the Income Tax Act.
Freelook Period
The freelook period allows the employer to review the policy terms and conditions. If dissatisfied, they can cancel the policy within 30 days, ensuring they make an informed decision without any pressure.
Optional Benefits
Optional benefits enable employers to enhance the Group Term Life Insurance policy by adding additional coverages, such as Spouse Coverage, Voluntary Insurance Coverage, and a Profit-Sharing Option, allowing for a more comprehensive insurance offering for employees.
Features and Benefits of Group Term Life Insurance for Employees
Group Term Life Insurance provides essential coverage and unique advantages tailored to meet the needs of employees and their families.
Insurance Cover
All members of a defined group are covered. New employees automatically join the coverage upon joining the company, ensuring immediate financial protection for their beneficiaries.
No Medical Check-Ups
Employees enjoy the advantage of no medical check-ups up to the free cover limit, which simplifies the process compared to individual policies.
Tax Exemption
The death benefit is exempt from tax under Section 10(10) D of the Income Tax Act, and any additional premium paid by employees is exempt under Section 80(C).
Freelook Period
Like employers, employees benefit from a freelook period to review their Certificate of Insurance. They have 15 days (or 30 days if sourced through distance marketing) to cancel if they find the terms unsatisfactory, providing peace of mind and a chance to reassess their choices.
Optional Benefits
Employees can take advantage of optional benefits that allow them to customize their coverage. This may include selecting additional riders or add-on covers that suit their specific needs, ensuring they have the right protection for their circumstances.
Financial Security for Dependents
In the unfortunate event of an employee's death, the Sum Assured is paid to the nominee, ensuring financial support for the family.
99.53% Claim Settlement Ratio For Digit’s Life Insurance in FY'25
99.53% Claim Settlement Ratio For Digit’s Life Insurance in FY'25
When life takes an unexpected turn, every second matters. With a 99.53% Claim Settlement Ratio (CSR), Digit Life Insurance stands as a pillar of trust and reliability. This isn’t just a statistic; it’s a promise to our policyholders.
Every claim tells a story. Whether it was a salaried parent overcoming loss, a child’s future hanging in the balance, or a spouse seeking stability, we acted fast to bring peace of mind to grieving families.
That’s why we are committed to settling genuine claims swiftly, transparently, and with compassion, ensuring that your loved ones receive the support they need when it matters most.
₹2.88 Billion Worth Claims Paid in FY'25
₹2.88 Billion Worth Claims Paid in FY'25
At Digit, we don’t just talk about protecting families; we actually do it. In the last financial year, we paid ₹2.88 billion to families who lost a loved one. That’s a big jump from ₹351.52 million a few years ago, showing how much we have grown and how seriously we take our promise.
Every payout represents a family supported, a future safeguarded, and a promise fulfilled. We make sure claims are settled quickly and clearly, with zero confusion, so families don’t have to worry during tough times.
15,000+ Claims Settled in FY'25
15,000+ Claims Settled in FY'25
Solvency Ratio for Digit's Life Insurance in FY'25 is 3.85
Solvency Ratio for Digit's Life Insurance in FY'25 is 3.85
At Digit, being financially strong isn’t just a goal; it’s how we earn your trust. Our solvency ratio has grown from 2.07 to 3.85, which means we are more than ready to keep every promise we make.
This number shows we have more than enough funds to pay claims and support families, even in tough times. In fact, our ratio is nearly double the required limit, giving you extra peace of mind.
Because when you choose life insurance, you are not just buying protection; you are trusting us with your family’s future. And we take that seriously.
Disclaimer: This report offers an overview of Digit Life Insurance’s performance, highlighting the growth in premiums, solvency ratio, and claims settlement metrics (CSR, claims paid, and claims settled), based on the company’s FY’25 internal data. The information is intended for general awareness only and should not be considered financial advice. Past performance may not reflect future outcomes.
How Digit Life Uses Smart Tech to Simplify Life Insurance?
How Digit Life Uses Smart Tech to Simplify Life Insurance?
At Digit Life, we think technology should be more than just innovative, as it should make things easier, safer, and more relatable. That’s why our dedicated tech team is always working to minimise hassles, reduce uncertainty, and ensure everything runs smoothly. Our innovative tools:
- Life User Declaration: Say goodbye to outdated methods! With our Life User Declaration video, our smart systems automatically verify your identity and ensure your declarations match your policy. This process is not only fast but also fully automated and secure, meeting all necessary regulations without any hassle.
- Face Matching: Our advanced Face Matching technology checks your identity with great accuracy. We use sophisticated computer vision models to compare your KYC image with your profile photo, as well as your live video images. This thorough and automated system makes sure it’s really you every time!
- Claim Document Classification: Our Claim Document Classification tool quickly sorts and understands the documents you send for your claim. Trained to handle various document types, this system instantly pulls out important information, helping us speed up the process of approving your claim. It’s all about getting your claims handled efficiently!
Digit Life Insurance in the Spotlight
Optional Riders Available in Group Term Life Insurance by Digit
The following are the optional riders and features that enhance Digit’s Group Term Life Insurance coverage.
Accidental Total & Permanent Disability Benefit
An add-on that provides extra coverage for total and permanent disability caused by an accident.
Critical Illness Benefit
Offers further coverage for critical illnesses beyond the standard benefit.
Accelerated Critical Illness Benefit
Allows for an early payout of the critical illness benefit upon diagnosis of a covered critical illness.
Spouse Cover
Extends insurance coverage to the spouses of members, subject to underwriting and additional premium requirements.
Voluntary Insurance Coverage
Members can purchase additional voluntary coverage, subject to underwriting and an extra premium.
Profit Sharing Option
If specified in the Master Policy Schedule, this option allows profit sharing based on favorable claims experience.
Wellness Benefit Program
An incentive program that encourages insured members to maintain a healthy lifestyle through access to various wellness services.
Complimentary Wellness Benefits for Digit Life Customers
Unlimited 24×7 Teleconsultations with General Physicians
Get expert medical advice anytime, anywhere.
Mental Health Consultation & Services
Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!
Diagnostic Tests & Health Check-Ups
Specialist Teleconsultations
Speak to top specialists in Mental Health, Women’s Health, Diet & Nutrition, and more, at flat 50%!
Women's Health Care Programs
Pregnancy Care Programs, access to Mum Support Group, PCOS/PCOD Care Programs, Maternity Support and much more!
Physiotherapy Sessions
Stress and Pain relief covered with exclusive discounts on Physiotherapy consultation and session bookings.
Dental Consultation Offers
Avail unlimited, free dental consultations and exclusive discounts on dental treatments.
Sexual Wellness
Chronic Care Support Programs
Personalized assistance for long-term health conditions.
Who is Eligible for Group Term Life Insurance?
Who is Eligible for Group Term Life Insurance?
Here are the types of entities that can opt for a Group Term Life Insurance policy to enjoy its benefits:
- Employer-employee groups
- Small and medium enterprises (SMEs)
- Non-employer-employee groups
- Professional groups
- Microfinance institutions
- Banks and non-banking financial institutions
- Start-ups
Why Choose a Group Term Insurance Policy?
Why Choose a Group Term Insurance Policy?
- Demonstrates Genuine Care for Employees: By offering this plan, you show that you support your employees’ professional growth and ensure their well-being and financial security. This builds trust and loyalty among your workforce, as employees appreciate the added protection for their families.
- Attractive Perk Without Complex Setup: The plan significantly benefits employees without adding complexity to your business operations. It’s easy to implement and manage, reducing administrative work while providing a valuable perk that enhances your employee benefits package.
- Scalable with Business Growth: As your company grows, this plan can effortlessly scale with it. Whether you hire more employees or expand globally, the policy can adapt, allowing you to continue supporting your workforce without reconsidering your strategy.
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Factors Affecting Group Term Life Insurance
Several key factors can influence the coverage and premiums of Group Term Life Insurance:
Eligibility Criteria
The age and employment status of potential insured members are crucial in determining coverage eligibility. Policies typically outline minimum and maximum age limits and specify which types of employment (full-time, part-time, or contract) qualify for inclusion.
Risk Sharing Options
The options for risk sharing at both the Master Policy and Member levels indicate that the group’s overall risk profile can affect coverage. Factors such as group size and the nature of occupations can influence the underwriting process and premium calculations.
Sum Assured Flexibility
The ability to adjust the sum assured during the policy term allows coverage to be tailored to the group’s evolving needs. This flexibility accommodates changes, such as workforce growth or shifts in financial requirements.
Health and Wellness Programs
While not always explicitly mentioned, many group insurance policies incorporate wellness benefit programs. These initiatives encourage healthy lifestyles among insured members, positively impacting the overall risk assessment and lowering premium rates.
Premium Payment Terms
The structure of premium payments, including frequency and any applicable loading factors, affects the affordability and accessibility of insurance coverage. Timely premium payments are essential to maintain the policy’s validity.
It's essential to verify the factors influencing Group Term Life Insurance at the time of purchase. Doing so will help you make informed decisions and ensure that your requirements align with the coverage criteria offered by Digit.
How to Buy Group Term Life Insurance Policy?
Here are the steps to purchase a Group Term Life Insurance Policy:
Enter Basic Details
Provide your name, phone number, email, and company information in the Digit Term Life Insurance lead capture form.
Get a Call From our Team
A representative will contact you to understand your requirements and explain the policy features, benefits, and customisation options.
Customise Your Coverage & Get Quote
Customise your policy by selecting from add-ons and benefits that best suit the needs of your employees. Based on your selections, you will receive a premium quote.
Finalise the Plan & Issue Policy
The policy will be issued after payment and verification and employees are then onboarded and provided with their individual coverage details.
The Super Smooth Claims Process at Digit Life
The Super Smooth Claims Process at Digit Life
- With our hassle-free claims process, it's just a 72-hour claim settlement from Last Document Received (LDR).
- We promise a 100% paperless claims experience. No hard copies of the Death Certificate or Medical Reports asked.
- Call our Helpline Number: 18002962626 or 9960126126
- Write to us on Lifeclaims@godigit.com
Seamless Claim Settlements Across Digit Term Plans
In FY'25, Digit life insurance claims settled increased by 719% year on year. The total amount disbursed also jumped significantly from ₹351.52 million to ₹2.88 billion, reflecting our rapid scale-up, improved operations and the growing trust placed in Digit’s life insurance offerings.
Disclaimer: Claims numbers include all variants filed under different product categories since inception.
Digit Claim Settlement for Group Term Life Insurance
- We settled 1,105 claims in FY 24–25, compared to 142 claims the previous year. That’s nearly an 8x increase in families we supported through our group term life insurance product.
- Claim payouts increased from ₹324.46 million to a remarkable ₹1.97 billion, demonstrating strong growth and our growing presence in group life insurance.
How Efficiently Digit Life Insurance Settles Claims?
How Efficiently Digit Life Insurance Settles Claims?
At Digit Life Insurance, settling claims quickly and fairly is not just a goal—it’s a commitment. To ensure our customers and their families are supported when they need us most, we focus on two key things: speed and transparency.
1. End-to-End Turnaround Time (TAT)
- This is the total time taken, from the day we first get the death claim to the day we complete it.
- How is It Calculated: We subtract the date the claim was registered from the date it was closed.
- End-to-End TAT = Claim Closing Date – Claim Registration Date
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Why Does it Take 13 Days to Settle a Life Insurance Claim?
Why Does it Take 13 Days to Settle a Life Insurance Claim?
When you file a claim, you may be required to submit some documents to process claim properly and legally:
- Claims form
- Death certificate
- Medical reports
- FIR/post-mortem report (if applicable)
- Nominee identification & bank account details
Sometimes, these documents take time to collect. Maybe they are with different hospitals. Maybe a nominee lives abroad. Maybe legal paperwork is delayed.
That’s why we measure two types of timelines:
Read More
Interesting Digit Life Stories and Milestones from FY’25
1. Record-Breaking Days
Talk about a busy day! We issued over 1.7 lakh policies on September 28, 2024. Our systems were operational even at late hours, issuing over 1,100 policies at 1:08 AM on December 7, 2024.
2. Our Growing Family
The average age for people joining the Digit Life insurance family in FY24-25 was 34 years old, a slight nudge up from 33 years previously.
3. Premium Extremes
Talk about range! We saw an annual premium as high as ₹35 lakh for our Digit Icon product, while we also issued policies for as little as ₹143 for a 2-year Digit Life Group Micro Term Insurance
4. More Women Protected
We saw a 1.2% increase in female lives covered this FY, with women now making up 49.89% of our total covered lives, up from 48.77% last year
5. Flexible Premiums
We've got options! Some folks opted for monthly premiums as low as ₹50 per month, while others chose the monthly premium category for a policy with an annual premium of ₹2.3 lakh (roughly ₹19,000/month).
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FAQs about Group Term Life Insurance
Are riders available with the Group Term Life Insurance Plans?
Do I get a maturity benefit or survival benefit under Group Term Life Insurance?
What is the minimum age to enroll for a Group Term Life Insurance Policy?
What is the maximum age to enter a Group Term Life Insurance Policy?
Can I continue my Group Term Life Insurance even when I leave my current employer?
Can I take loan against this policy?
What is Digit’s Group Term Life Insurance?
How does Digit’s Group Term Life Insurance work?
Can I enroll in a Group Term Life Insurance plan if I have a personal life insurance policy?
What happens to my Group Term Life Insurance if I change jobs?
Is there a waiting period for Digit’s Group Term Life Insurance?
Are the benefits of Group Term Life Insurance taxable?
What is the premium payment frequency for Group Term Life Insurance?
Can I increase the coverage amount of my Group Term Life Insurance?
What should I know about common exclusions in my policy?
How do I file a claim for Group Term Life Insurance?
What options do I have for converting my Group Term Life Insurance to an individual policy?
* 1. The applicability of the wellness benefit program and its features may be amended from time to time as per the prevailing underwriting policy of Go Digit Life Insurance Limited. The list of benefits under this program and terms and conditions applicable to it are provided in Annexure I in the Product Brochure.
2. Wellness benefit is a feature of Digit Life Group Micro Term Insurance. These features are provided under the Wellness benefit program. Wellness services are extended through 3rd party Service Providers. The cost of availing services shall be borne by the insured directly. Digit Life Insurance is not responsible in any manner for nature or quality of product/services or discounts provided by the empaneled Service Providers. You can refer to the respective Service Provider’s terms and Conditions before availing any services. The offerings of the Service Providers, including any discounts or complimentary access / service are subject to change from time to time. For more details, please read policy terms and conditions carefully before concluding the sale.
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