- The Group Life also known as Death-in-Service provides compensation for the dependants of employees who died while in their service. The objective here is to provide a lump Sum for the benefit of the dependent(s) of any deceased employee.
This is flexible as it could be arranged either as a chosen Enhanced Flat Amount or Multiples of Salary (Total Emolument as stipulated by the Pensions Reform Act).
- Flat amount: indemnity is based on a pre-agreed amount that will be paid if an employee becomes deceased during the course of employment.
- Multiples of salary: As an alternative to the flat amount stated above, the Death-In-Service Benefits could be arranged as a Multiple of Salary say Three (3) times the Annual Salary/Total Emolument of each employee. In the event of death, the benefit would be paid to directly to the named beneficiaries of the deceased employee or to the welfare department of the organization.
Who can buy this policy? Private or Public Employers with 3 or more employees.