7.4       GROUP LIFE ASSURANCE

Group Life Assurance is a death service scheme wherein the benefits are payable only at death of the employee, to his/her named beneficiary or dependants.

7.4A    The Scheme affords maximum protection with a low premium outlay. The lump sum payable, usually a multiple of salary, create an immediate estate for the dependant of the deceased, the policy is kept in force by the remitted of annual premium within the stipulated period of 30 days.

7.4B    The above scheme is essentially non-medical, although individual members with Insurance in excess of the Group Sum Assured (GSA) limit might be required to show evidence of good health by the way of medical examination while satisfactory medical will guarantee cover for the excess amount.

7.4C    Scheme of this nature often eject dedication in the employee as they realize that their dependants will adequately be compensated in the event of any sudden illness, disability or death.

7.4D    It equally minimize the hazards of financial handicap of work unit in raising fund for the dependants of deceased member, as such money might not be timely or readily available.

7.4E    The  Pension Reform Act 2004 as amended by the new Pension Reform Act 2014 makes Group Life Assurance Scheme compulsory for organization employing 15 or more staff, and the death benefit has to be minimum of 3 time annual emolument, which includes Annual basic salary, Transport and Housing allowances.

7.4F     Every employee of Labour in both private and public sector of the Federation to provide and maintain a Group Life Assurance Policy for all their employees.

7.4G    As soon as the nominal roll is made available to us, which contain the Annual Total Emolument i.e. Basic salary, Transport and Housing allowance, it will be fed into our computer and work upon by our actuaries to produce an analytical tabulation of the premium/benefits analysis, which will bring a comprehensive meaning to the proposed Group Life Assurance Policy at a glance.