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Group Life Assurance

It is a known fact that when an employee dies or is disabled and out of work, it affects the family, customers, co-workers, managers and to a large extent, the business can suffer significantly.

Typically, the amount of life cover provided is related to a number of years’ salary (i.e. 2, 3, 4, or 5 years’ salaries) and is payable on the death of an employee. This forms the pre-determined sum to be assured and provides cover for the insured employee for death due to any cause, including illness and accident.

Group Life Assurance policies are only offered on a compulsory basis, which makes the administration cheaper – leading to lower costs for the employer. These policies include:

  1. Death Benefit – A lump sum amount equivalent to a multiple of salary assured on the policy will be paid to the organisation for transmission to the deceased’s nominated beneficiaries, if the incident has occurred while in service. This life assurance policy will cover both death arising from natural causes, such as illness and accidents. Death arising from HIV and related illnesses are also covered. Cover will be on a 24-hour basis.
  2. Permanent Total Disability Benefit – This section will cover permanent disability on a 24-hour worldwide basis, whether the injury is caused out of and in the course of employment or out of personal engagements subject to certain exceptions such as wilful misconduct and related acts. The amount payable in respect of permanent total disability will be a lump sum amount equivalent to the death benefit.
  3. Permanent Partial Disability – This refers to a situation where a member is not permanently and totally disabled, but has lost one of the limbs or organs permanently such as loss of an eye, ear, foot, etc. The amount payable will be a percentage of the permanent total disablement benefit, in accordance with the permanent partial disability scale.
  4. Temporary Total Disability - This refers to total and absolute incapacity from following usual business or occupation for a period of over seven working days.The compensation specified for this section is weeks’ salary which will be payable for not more than the number of 52 or 104 weeks stated in the schedule. Such payment shall cease as soon as the injury causing the incapacity has healed as far as is reasonably possible, notwithstanding that Permanent Disability may remain.
  5. Critical Illness – The diseases covered under this benefit are cancer, heart attack, cerebrovascular incident (stroke) and major organ failure (kidney). The benefit under this extension pays an accelerated lump sum of 30% (thirty percent) of the sum assured under the basic life cover on this policy. Any claim that is paid out reduces the amount available for future claims.
  6. Free Cover Limit (FCL) – Cover under this policy will be provided free of evidence of health with no HIV/Aids testing where the individual staff member’s sum assured is within the schemes FCL. A medical examination will only be needed for members having a sum assured or requiring cover beyond the FCL.

Benefits

The policy guarantees to pay a lump sum usually calculated as a multiple of the salary of an employee. The salaries are declared on commencement date and thereafter on each renewal date.

Premium

The premium is payable annually in advance.

Documentation

For convenience and ease of administration of the scheme, we try to minimise the number of documents and forms to be completed and submitted by the client. The documents required are as follows:

  • Group Proposal Form
  • A schedule of details of the persons to be covered. The schedule should have the following details:
    • The name
    • Date of birth
    • The identification number
    • Salary (monthly or annual)

Upon receipt of the group proposal form, the member's schedule and the premium, the policy document will be issued.

Evidence of Insurability

Medical evidence of insurability is required for all the sums assured which are above the free cover limit. A medical examination is usually carried out by any of the medical examination service providers in our panel.

Claims Procedure

If an accident occurs that causes reason for a claim, the client should report such an incident to the insurers within 48 hours. The following documentation will be required to substantiate the claim:

  • Claim Form
  • Certified Copy of the Burial Permit
  • Certified Copy of the Death Certificate
  • Medical Certificate
  • Salary slip of a deceased member
  • Copy of the deceased’s ID card

The policy does not have an AIDS Exclusion clause.

Sanlam Life Insurance will settle claims within 48 hours of final submission of the requisite claim documents. Taking into account documentation submission, queries, weekends/public holidays and other contingencies claim settlements should be expected within 14 days (two weeks) to give reasonable allowance.

Download Forms

Group Life Assurance Proposal Form
Group Life Assurance Claim Form

Institutional

Sanlam Life Insurance is a licensed financial service provider.
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