Employer-sponsored Life insurance plans are arranged and paid for by businesses on behalf of their employers as part of an employee benefit package. This type of live cover can also be arranged by not-for-profit organizations on behalf of their members.
Group Life Assurance Scheme (GLA)
A Group Life Assurance Policy provides lump sum death-in-service benefit to the dependants 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 and funeral benefits. Group Life Assurance level of cover of benefits can also be stated as a flat sum.
Group Last Expense Cover (GLE)
This is similar to GLA, except it is designed to support costs incurred after demise such as funeral expenses, burial preparations etc. It can be extended to cover family members as well. Benefits can also be stated as a flat sum. Death cover is either due to an accident or natural causes.
Credit Life Assurance Policy
This is a policy that provides for the payment of an outstanding loan in the event of the occurrence of the death of the policy holder. This insurance plan provides cover for the payment of an outstanding loan on consumer durable goods like; household items, electronics etc.
Product features
- The product is designed to secure consumer loan holders against the financial risk of death/critical illness before repayment of amount owed.
- On death after the guaranteed period no further payment will be made.
- The minimum age at entry is _ years while the maximum entry age is _ years.
- The maximum age at maturity is _ years.
- On death after the guaranteed period no further payment will be made.
- The maximum age at maturity is _ years
- There will be no medical examinations for Sums Assured below_
Benefits
- It serves the purpose of protecting policyholders’ dependents from the financial consequences of the inability to repay the loan outstanding as a result of the death or critical illness of their breadwinner.
- It protects the dependents’ from the anger of financial institution in case of default thereby restricting the financial institution from assets
