Group Life Assurance is a life assurance policy which provides death-in service benefits to the employees in common employment of an Organization or a group of people like Association, Clubs etc under similar exposure.
It provides monetary payment to the beneficiary (ies) of a deceased member of the scheme. Provision of a group life assurance scheme goes a long way towards demonstrating an employer’s genuine care for staff welfare as well as encouraging loyalty and reassuring staff that they are valued
Group Life Assurance policy is open to employers of labour, clubs, associations, unions, religious groups, cooperatives and other friendship and social organizations e.t.c who exist as a group.
The Pension Reform Act 2004 made it mandatory for all employers of labour having up to five employees to maintain a Group Life Assurance policy for at least 3 times of their annual total emolument.
- Death – The policy provides for the payment of the sum assured in the event of the death of a member of the scheme from any cause, natural and accidental.
- Disappearance (Presumed Death) – The policy also provides for the payment of the sum assured for those in common employment in the event that an insured person disappears and is not seen for a period of 12 months and there is sufficient evidence to assume that the member is dead. However, the person receiving the sum will sign an undertaking to refund it if the missing person is subsequently found to be living.
In the event of the death of a member of the scheme, the sum assured designated for that member becomes payable.
- It is a yearly renewable term assurance
- A single master policy and certificate are issued covering all the members
- No medical examination for sums assured below our free cover limit
- It is flexible; members can join or leave the scheme at any time
- The sums assured/benefit are at least 3 times the annual total emolument for those in employment, and any required flat/level benefit for other groups
- The policy coverage is worldwide
- Minimum age at entry is 18 years
- It gives peace of mind
- It is a without profit Life Assurance policy
- Sum assured or benefit is payable only on death or disappearance
- Premiums are paid by the Employer/Organization