Note

• All employees of a company should be covered
• Not to be confused with credit life schemes where the borrowers are insured

Cover

• All types of benefits possible
• Sum assured is based on salary and / or occupational class

Purpose

• The company wants to offer a benefit in addition to remuneration
• Advantages of a group cover:
  • Discounts, special conditions, or simplified underwriting for employees
  • Tax relief for the employer

Beneficiary

Family / dependents

Policy holder

Company

Insured

Employees of the company

Evidence

• Normally there is an individual Automatic Acceptance Limit / Free Cover Limit. Up to this limit, the insured will be accepted without underwriting

• Generally, no financial evidence is obtained

Income

The sum insured is based on salary and / or occupational class, which is known by the company.

Calculation

In general, no financial underwriting is done, as the calculation of the sum assured is defined in the treaty.

Please note:

• Be aware that there might be existing covers which could lead to over-insurance. Therefore, it is reasonable to have a treaty clause which limits disability payments to a certain percentage of income should a claim be made.
• In some markets, group covers can be converted into personal cover if the employee leaves the company.