This policy is a type of life insurance in which a single contract covers an entire group of people. Typically, the policy covers the employees of the policy-owner’s organisation. This type of cover pays a lump sum to an employee’s loved ones in the event that they die whilst covered by the policy.
As Group Life Assurance is a valuable employee benefit, it is often provided as part of a complete employee benefit package. In most cases, the cost of group coverage is far less than the employees or members would pay for a similar amount of individual protection.
As with other types of life insurance, Group Life Insurance allows employees to choose their beneficiary, thereby ensuring those closest to them are cared for at this most critical time.
Multiple employees are covered under the one plan, which is owned by the company. Usually, the benefit is calculated as a multiple of each employee’s salary; however, this can be tailored to suit the needs and budget of your organisation and can be arranged on a flat benefit basis, if required.
This scheme can be one of the simplest schemes a company can offer its staff and it can go a long way towards demonstrating an employer’s genuine care for staff welfare, as well as encouraging loyalty and reassuring staff that they are valued.