Group Life Assurance Scheme
Our Group Life Assurance Policy or Death-In-Service Benefit Scheme is a contract of insurance designed to provide for the payment of capital sum (sum assured) to the dependents of an employee who dies while in the service of the employer.
- The Employer is the policyholder while the Employees are the insured lives.
- The scheme is arranged to provide benefits in the event of death only.
- Policy grants cover for both accidental and natural death.
- Premiums are usually paid by the Employer only.
- Policy is renewable annually.
- Coverage is on 24 hours basis.
- Provides Lump Sum cash benefits or programmed monthly/quarterly withdrawal by dependents/spouse.
- Scheme is essentially non-medical, except for individuals with insurance in excess of the Group Free Sum Assured.
- All or part of the benefits can be converted to Dependents Annuity until the last dependent attained the age of years.
- All or part of the benefits can be converted to dependents Annuity until the last dependent attained the age of years.
- To relieve the employer of financial commitments associated with employee’s death (e.g. compulsory payments, funeral expenses).
- To provide a source of emergency funds.
- To create goodwill between the employer and the employees thereby promoting industrial harmony between Management and Union.
- To attract and retain good employees.
- Improved productivity because of the attendant peace of mind enjoyed by the employees.
- Profit sharing/Experience-rating system. This will ensure payment of premium commensurate with the risk and a further cost reduction at every renewal.
- Provision for return of un-used premium if more than 50% of employees are laid off within three (3) months of commencement of an Insurance period.
- Flexible benefits: At every renewal, there is opportunity for a general review of the benefits to ensure continued adequacy and competitiveness in terms of benefits and premiums payable.
- To provide lump sum benefit on death of an employee (minimum of 3 times total emolument).
- To give peace of mind to the employees while working.
- Prompt disbursement of benefits.
- Annuity Option for the dependents of deceased employees.
- Continuation/Conversion Options: Employees are free to take up individual policies without being subjected to further medical examination after separation.
- Post retirement insurance coverage up to the next anniversary is allowed for employees retiring within an insurance period.