Comprehensive Group Life Assurance Scheme
Section 4(5) of the Pension Reform Act 2014 require every employers of labour with 3 or more employees to maintain life insurance policy with minimum sum assured of three (3) times annual total emolument. it may be extended to cover accidental permanent disability, critical illness, funeral expenses and accidental medical expenses subject to an agreed limit.
- 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 for the dependants.
- Scheme is essentially non-medical, except for individuals with sum assured in excess of free cover limit.
- All or part of the benefits can be converted to Dependants Annuity.
- Benefit under the group policy can be converted to individual policy within 30 days of leaving the scheme free of medical examination.