Group Term Insurance
This life assurance plan is offered to the employer under group term assurance arrangement. The benefits are almost always based on a multiple of annual salary say 1, 2, 3, 4 or 5 annual salary. In case of death while still in the service of the employer, the policy pays out in a lump sum, such death benefits to the dependants of the deceased employee. The cause of death can be sickness or accident, and it is a twenty-four hour cover. The most common names applied or used worldwide for this benefits is Death-In-Service Benefits.
Indeed as the name suggests, this plan helps the employer to cater for the dependants of the employees due to such premature death. Its importance is more evidence in a case where the affected employee has hardly accumulated any substantial savings under the employer’s savings plans.
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