Group Life Assurance Scheme
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 dependants of an employee who dies while in the service of the employer.
Section 4(5) of the Pension Reform Act 2014 requires every employer of labour or more employees to maintain a life insurance policy with a minimum sum assured of three (3) times annual total emolument
- 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.