Why Effect a Group Life Assurance
There are two main reasons for an employer to effect Group Life Assurance;
1. Workers are exposed to occupational hazards ranging from a slip in the office to loss of life while on the job or in the course of employment.
2. Attracting skilled workers require worthwhile incentives and group life assurance is one of the welfare packages that ensure employee loyalty.
As part of staff remuneration package, the employer is able to retain staff as well as attract quality staff.

Insurance companies require that a Group Life Assurance be made on conditions of service and therefore compulsory for all employees. This is to avoid healthy employees opting out of the scheme. But membership of a member starts when the member is included in the scheme. An employee whose details have not reach the insurer would be deemed as a non-member in the event of a claim.
Further an employee shall remain under the scheme until his/her membership is terminated in terms of laid down termination conditions.

The benefits are usually multiples of annual salary up to 5 times annual salary but could also be for a fixed sum of money.

Free Cover Limit (FCL)
This is the limit acceptable without evidence of good health. Those whose limits are above the (FCL) may be requested to go for medicals which may include HIV AIDS test or complete medical enquiry forms. To calculate the level of free cover limit, multiply the annual salary by 4.