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Group Life Assurance South Africa
Many employers provide group assurance for their employees as an employment benefit.
Usually group assurance is linked to a retirement fund, the premiums for the life and disability benefits are deducted from monthly contributions to the fund, and the balance goes into retirement savings.
The main advantage of group life cover is that the benefits automatically apply to all employees. An individual employee does not have to undergo a medical examination to qualify for the cover. This is often useful for older employees that are unable to get life cover on their own accord due to a medical condition. Consequently, if you are offering this as a benefit you could increase your staff retention rate.
Group life cover typically has few exclusions. Usually, the exclusions are for events such as death as a result of atomic, biological or nuclear warfare, and not for pre-existing conditions you may have, such as diabetes or HIV.
Unlike individual life assurance, group life assurance does not discriminate between individuals and, if you are a smoker, you will not pay a higher premium than a non-smoking employee.
Because group life assurance works on the principle of pooled risk, it is available to all employees regardless of their health status.
Group life assurance premiums are often cheaper than individual life assurance premiums. However, life assurance companies will decide on the cost of the group cover based on your company's risk profile. For example, a mining company or its retirement fund would pay higher premiums for group life cover than an accounting company or its retirement fund because of the higher risks associated with mining.
To find out how Intergate Corporate can assist your organization please contact us for a free initial consultation or request a call back.
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