Life Assurance

Group Life Assurance Cover

This is a life assurance policy offered to employers for the benefit of employees. It is a group term assurance policy.

The policy guarantees to pay a lump sum usually computed as multiple of salary of an employee. The benefits are paid to designated beneficiaries of the employee, where death occurs to an assured employee due to illness or accident.  The salaries are declared on commencement date and thereafter on each renewal date.

Group Life Assurance is designed to enable employers to make provision for the dependants of employees who die in service. The employer is the assured (policy owner) and the employees are the lives assured. Cover ceases if the employee leaves service earlier or on normal retirement date.

The sum assured for each employee is usually expressed as a number of times the annual salary, but can also be an equal flat amount for all employees.

Individual Life cover

This provides cover to an individual life. In case of death, the underwriter will pay the benefits agreed to the named beneficially named in the contract. It may combine life cover with investments depending on the structure of the actual product purchased.