A Group Life Assurance Policy provides lump sum death-in-service benefit to the dependents of a deceases employee. The policy is usually employer-sponsored. The level of cover (benefits) is often expressed as a multiple of the employee’s last notified annual salary. The policy may be issued with riders such as disability benefits, critical illness benefits, funeral benefits, and accidental death benefits. Group Life Assurance level of cover of benefits can also be stated as a flat sum.
Additional Benefits under GCLA
- The Accidental Death benefit becomes payable when death of the life assured is because of accidental causes.
- The TPD benefit shall become payable when the Life Assured becomes permanently unable to work in any occupation which the Life Assured is reasonably able to do, given his experience, education, or training, because of an injury or illness; subject to a waiting period of six months from the date of disablement.
- The Critical Illness benefit becomes payable when the Life Assured is diagnosed with certain defined illnesses.