Are you an employer?
What is Group Life Coverage?
Group life insurance is a contract coverage for employees, managed and paid for by your employer. Naturally, the policy owner is the employer, and the policy covers the staff members of the organization. Group life insurance is provided as a component of the staff benefits package. Mainly, group coverage premiums cost way less than the amount employees would pay for individual insurance protection. Therefore, if you are offered corporate life insurance through your company or another faction, you should consider it, especially if you do not have life insurance or if your personal insurance coverage is inadequate.
As the policy owner, one retains the insurance coverage or the master contract. Each employee under coverage receives a certificate of insurance as proof of assurance, but it is not the real insurance contract document. Similar to other forms of life policies, group covers allow you to pick your beneficiary.
What Types of Cover Can I Get in a Group Life Cover?
Term insurance is the common form of group life coverage. Group term life is structured in annual renewable term cover. The employer caters for all the payments. The total sum assured of your cover is equal to one or two times your annual salary.
Group term coverage remain active until your service is terminated or until the fixed coverage term stops. You may convert your group life cover to an individual contract if you resign from your company. Though, most people opt not to convert the policy because the new premiums escalate higher than standard individual plans in the market.
Corporate life insurance is typically calculated at discounted rates as opposed to the personal insurance rates, as admin and anticipated claims costs are at a bare minimum. This means that you get a bloated sum assured, at a small premium, which you do not pay for. In the event of your demise, your boss claims the sum assured and hands it over to your documented next of kin.
Group Life Insurance is often compulsory – once your employer decides to pay for coverage. Since mandatory policies offer less risk, they are subjected to unrestricted underwriting requirements compared to ordinary individual covers.
Benefits of Group Life cover
- Financial assurance since the risk of loss of employee is transferred to the insurer
- Boosts workers confidence in their organization and increases job productivity and fulfillment
- Improves staff retention to the organization
- Attracts expert qualified talent due to the attractive welfare benefits
Insured Members enjoy financial security in the event of loss of life for their families and health wise; they do not have to worry about escalating medical costs while hospitalized.
The members do not have to worry in the event of critical illness cost coverage. The group health insurance caters for their medical expenses.
The dependents do not have to worry about living costs and significant expenses such as mortgage payments, car loans, or school fees costs; in the event of the untimely death of the member of staff.
Scope of Group Life Coverage
Group life insurance provides cover against natural, untimely, or accidental death. The cash benefit equivalent to the sum insured selected at inception is allocated to the employer for transfer to the immediately nominated beneficiaries.
Coverage is calculated based on compounded annual income subject to medical assessment where relevant.
Some insurance companies include free riders attached to the group life cover. These riders are provided at the insurers’ discretion regarding the scope of coverage attached.
Available riders in a typical group life cover includes
Critical Illness (Optional)
Offers limited medical coverage in the event of a first-time employee diagnosis of the following conditions;
- Coronary artery surgery
- Heart attack
- Paraplegia or paralysis
- Kidney failure
- Major organ transplant
Disability Benefit (Optional)
It compensates in the event of an employee’s permanent and total disability subject to the scope of coverage
Last Expense Benefit (Optional)
Purchased separately or given as an advance payment upon the death of member under the main Group Life benefit.
At Bismart, we significantly take into consideration all your welfare needs and concerns. We have collaborated with all the key insurers to provide you with coverage best suited for you financially and as an organization.
We take care of all the contractual details like reading through available covers from different companies. Once you settle down on the choicest coverage, we help you fill out the proposal forms at your pace.
At Bismart, we give all our clients the undivided attention due to them, according to their immediate needs.