Group Life insurance is a benefit offered by an employer or
an aggregator of diverse segments of the population for reasons other than insurance
(like an association or labour organization) to its workers or members. Such
organizations are called the sponsor of the group life scheme. Group life insurance
is typically offered as part of employee / membership benefit package.
Ideally the cover will cost each individual worker or member
less than if they had to purchase an individual policy. Those receiving coverage do
have to pay anything “out of pocket” for the Group Life policy benefits if the
or the group to which they belong provides this as a benefit. However, members of
group or employees may pay directly through salary or annual subscriptions if the
or the group plays the role of a facilitator only. Usually a minimum number of
or members are prescribed for the team to qualify as a group for the purpose of
group life cover.
What is covered under the Group life policy have?
This benefit is payable on death from illness (natural causes) or
The amount payable, called the sum assured, is either a fixed sum for all
in a particular category as predetermined by the sponsor or is determined as
multiple of the annual salary as set by the sponsor. The benefit is normally
paid out as a lump sum to either the sponsor or the designated beneficiaries
of the deceased employee / member.
This is normally taken as an additional benefit to help facilitate the
of the mortal remains of the deceased member. The benefit amount ranges
Kshs. 30,000 and Kshs. 200,000/- either as a separate cover or as
(advance payment) of part of the full death benefit described above.
this benefit is paid within 48hours of receipt of written notification of
Credit Life Assurance& Sacco loan protection:
Group life plans are also used to provide cover to redeem the outstanding
in the event of premature death or disability of the borrower. This cover
can be renewed
every year (annually renewable) or provided at the onset of the loan
agreement for the
entire term of the loan (single premium option). All lenders with a minimum
borrowers including financial institutions and Sacco’s qualify for this
Group life schemes offer mortgage protection arranged on a yearly renewable
premium basis for lenders to specifically protect the families of the
from the risk of the lender reselling their home in the event of the
untimely death or
disability of the breadwinner. This cover provides the same benefit as for
What are the age limits for the Group Life Assured plan?
The minimum age at entry is 18 years while the maximum age at entry is 65.
Beyond the age of 70 years, renewal for the respective member is reviewed