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Why GLA Insurance?
Group Life Assurance (GLA) is a valuable addition to an organization’s employee benefits program. It is an inexpensive way to let your employees know that their loved ones will be taken care of in the event of their death. Often it may be the only life insurance they own.
GLA provides for lump sum payments in the event that an employee dies while still in the service of the organization. It also extends coverage to Permanent Total Disability, Critical illness and last expenses or funeral expenses.
Although GLA is most commonly offered by employers, you may also qualify for through your membership in an association or a professional organization or even a union. The policy will typically expire when you sever ties with the organization.
When you opt into a group life insurance policy, you will need to fill out paperwork and designate one or more beneficiaries. However, your employer or organization will be the policyholder, and all the benefits are paid through the organization.
Our knowledge and many years of experience placing GLA on behalf of our customers can help you select the right GLA plan that is both affordable for your business or organization and appreciated by your employees or members.
WHAT YOU NEED TO KNOW
What is Group Life Assurance?
Group Life Assurance cover is a type of term insurance, also known as death in service benefit, which an employer may offer to its staff. It is set up by the employer to cover employees while in service within their organisation. The purpose of GLA is to provide financial support to the family of an employee or member who dies while part of a company or organization. Employers typically cover the cost of this insurance, though employees can choose to opt in or out of coverage.
How Does Group Life Assurance Work?
In case of death of an employee or member, death in service benefit pays out a lump sum to the employee’s family or next of kin. The lump sum is usually based on a multiple of the employee’s salary, for example three, five, or eight times your salary. The employee must be employed with the organisation at the time of death. The policy usually runs until normal retirement age. If the employee takes time out from the career or leaves the company for any reason the cover terminates.
What Are The Benefits To Employers?
1. Alleviates the financial distress that might befall the dependants of an employee upon his/her death. 2. Enable employers to attract and retain high quality staff as the employees feel they are cared for. 3. Gives peace of mind to the employees and hence are more productive. 4. Provides a full proof 24-hour cover against death/disability resulting from accident and diseases. 5. You are prepared to assist employees’ families at their most vulnerable time without necessarily incurring extra costs.
Does Group Life Assurance (GLA) Pay Out?
Yes - but only if the insured is still employed by or a member of the sponsoring organization when they die. Group life insurance expires when you quit, change jobs, get fired or stop paying dues. It also typically expires when you retire. Note that group life insurance policies typically have a low death benefit compared to individual policies.
What Is The Difference Between Life Insurance And Group Life Assurance?
With most life insurance policies, the policyholder and the insured are the same person - the policy covers you, and you own it. Group life Assurance is a little different. Though the policy covers you and you name the beneficiaries, you are not the policy owner. Instead, your employer or organization owns the policy. Group life Assurance is easier to obtain than an individual life insurance policy, with no medical exam required unless you the limit is above the Free Cover Limit (FCL), and generally costs you (the employee or member) nothing.