Overview
- GPA (Group Personal Accident) and GTL (Group Term Life) are both fixed-benefit group insurance policies offered by employers: GPA covers accidental death/disability; GTL covers death due to any cause .
- If employees are covered under both GPA and GTL, accidental death claims will trigger both policies, but natural death claims trigger only GTL 1.
- To avoid redundant coverage, companies can remove the accidental death benefit from the GPA, relying instead on the GTL policy for that risk. This optional benefit withdrawal can cut GPA premiums by approximately 25–40% .
- GPA remains valuable for covering disability (PTD, PPD, TTD) and add-on options like Accidental Medical Expense (AME), education benefits, mobility aids, and funeral expenses—not covered by GTL .
- Bottom line: By removing overlapping AD benefits in GPA, companies retain essential accident coverage while significantly reducing premium costs.
GPA policy and GTL policy offer accidental and life coverage respectively. Both are fixed benefit policies that provide financial security to the employee’s family upon the employee’s death.
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) | |
| Add-ons | Add-ons |
| 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 policy covers only accidental death, however, the scope of GTL policy is broader to cover both usual 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.
Additional Read: What are the different types of Disabilities covered under a Group Personal Accident Plan?
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 unexpected 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 the Group Personal Accident 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.
FAQs
- What is GPA vs GTL coverage?
GPA (Group Personal Accident) covers accidental death and disability (PTD, PPD, TTD), often with add-ons for medical, education, mobility, and funeral expenses.
GTL (Group Term Life) covers death due to natural causes and accidents but doesn’t include disability or medical add-ons .
- Do both GPA and GTL pay for accidental death?
Yes. In case of accidental death, both policies are triggered, offering dual payouts—while in natural death, only GTL applies .
- Why remove accidental death from GPA?
Removing overlapping accidental death coverage from GPA avoids redundancy with GTL, helping lower GPA premiums by an estimated 25–40%, while keeping other critical benefits intact .
- What benefits remain in GPA after removing the AD benefit?
GPA still covers Permanent Total Disability (PTD), Permanent Partial Disability (PPD), Temporary Total Disability (TTD), and optional SAFETY add-ons like Accidental Medical Expenses, Education Benefit for children, Mobility support, and Last Rites expenses .
- How much can you save by removing accidental death from GPA?
Removing the accidental death benefit from GPA can reduce the premium by about 25–40%, offering significant cost savings for organizations .
- Is this strategy legally or contractually valid?
Yes. Most GPA policies are customizable. Insured organizations can choose optional benefits and remove certain coverages through formal policy structures .
- What should employers consider before making the change?
- Confirm GTL includes Accidental Death Benefit (ADB).
- Ensure GPA continues to cover disability and add-ons.
- Compare cost savings vs. coverage gaps with insurers or brokers.
Written By-
Gunjan Saxena
MBA Insurance Management
With a robust background in the insurance industry, Gunjan is a seasoned professional who brings 10 years of expertise to group personal accident insurance. Throughout her career, she has demonstrated a deep understanding of the intricacies and nuances of insurance products, particularly in personal accident coverage. Having worked closely with both individuals and businesses, she has gained valuable insights into the diverse needs and challenges faced by clients seeking insurance protection. Her experience encompasses designing tailored insurance solutions, providing expert advice, and guiding clients through the insurance process with confidence and clarity.
Through her articles, Gunjan aims to educate and inform readers about the importance of group personal accident insurance and the benefits it offers in safeguarding against unforeseen events.
