Group Life Assurance

A Group Life insurance contract covers the members of a particular group such as Company Employees or members of a Club, Society, Association, Church, Mosque etc.

The Pension Reform Act 2004 requires all Employers of Labor to provide Life Insurance cover for their Employees. The minimum Benefit to be received by an Employee’s Beneficiary as specified by the Act is three times an Employee’s Total Emolument.

KeyFeatures:

  • The Scheme is arranged primarily to provide benefits in the event of death.

  • Benefits are usually in form of a single Lump Sum payment.

  • Benefits (i.e. the Sum Assured) are multiples of an Employee’s Total Emolument (minimum of 3 times such Emolument as prescribed by Nigerian Law).

  • It is the cheapest form of Life Insurance (see sample quotation below).

  • It is usually valid for a period of 1 year but can be renewed annually thereafter.

  • Cost is usually borne solely by the Employer; Employees do not contribute towards the cost of the Scheme. 

Name

Age

Sum Assured

Annual Premium

Mr. A.

25

1,000,000.00

3,280.00

Mr. B.

30

1,000,000.00

3,330.00

Mr. C.

35

1,000,000.00

3,530.00

Mrs. D.

40

1,000,000.00

4,230.00

For ease of administration, a fixed premium rate could be adopted for all members irrespective of their ages.

Requirements:

The following would be required from interested Employers for the computation of benefits and the corresponding premium payments:

  • Names of Employees/Members
  • Gender / Sex of Individual Employees/Members
  •  Dates of Birth of Individual Employees/Members
  • Required Level of Benefits (i.e. Sum Assured)
  • Commencement Date of the Scheme 

Once the above information has been received, African Alliance will generate your Organizations’ Group Life Scheme.