Group life insurance is a type of life insurance policy in which a single policy covers an entire group of people. In this case, an employer can cover all his employees under one contract with an insurance company.
Let me share the story of Engineer Tunde with you:
Tunde works at ABC Construction Limited — he just joined the company. Having worked in the construction industry for 20 years, he is very aware of the pros and cons of his work, particularly as a site manager. His new job role allows him to work with different vendors ranging from bricklayers to hotshot architects.
Tunde makes it a point of duty when given the opportunity in job interviews to inquire about his work packages, particularly group life and group personal accident insurance policies. This is because he is aware of the dangers inherent in his line of work and should any unfortunate incident occur while at work, his wife, 3 children, 2 siblings and parents would not suffer.
On a Thursday morning, Tunde went to one of the sites he is managing. When he got to site, he noticed the way his artisans worked; diligently but very negligent with regards necessary precautions to ensure their safety while carrying out their various duties. They were not using their Personal Protective Equipment (PPE). So, he called for a meeting in order to make them aware of the reasons why they needed to take precautions at work.
During the meeting, he asked the artisans if they knew about their company’s group life and group personal accident policies or if they even had one in place. They all looked at him extremely clueless as they had no knowledge of what he said. Tunde went ahead to explain group life and group personal accident insurance to them. He used the story of a late colleague at one of his previous jobs to explain the benefits and consequences of an employer not having a group life policy. The company had no group life policy for its staff.
Nigerian Pension Reform Act (PRA) 2014 mandates group life insurance hence, the family of his deceased colleague was able to sue the company and the court eventually ruled in the family’s favour. Tunde told them that prevention is better than cure and it was important for them to inquire from their companies also if they had the policy in place, to avoid the undue stress of a lawsuit.
The workers thanked Tunde for his advice and then asked him to suggest a reputable company that they could push to their employers. He told them his company is insured by Cornerstone Insurance Plc and is guaranteed of their services.
Benefits of Group Life Insurance
Some of the benefits he shared with them are:
- Each employee’s dependent is entitled to at least 3 times the annual emolument of the deceased employee
- That the benefit provided can enable the family of the deceased to maintain their standard of life
- The policy can be extended to include riders such as permanent disability and personal accidents which can easily occur even in their line of work, critical illness or funeral expenses.
Group life insurance is one of the packages every employee should look out for when accepting a job offer.
To learn more about group life insurance, send us a mail by clicking HERE.
More importantly, ensure you keep safe.
If you have any symptoms such as Dry Cough, Shortness of Breath, or Fever. Please contact Nigeria Centre for Disease Control on 080097000010.