What is group life policy?

In Kenya, Group life policy also known as a Group insurance scheme, is a collective life insurance plan designed to provide financial security and protection to a defined group of individuals, mostly employees within a company or members of an organization. 

The insurance scheme is sponsored by an employer. It serves as a safeguard for individuals and their families in the face of unforeseen circumstances. Offering a collective safety net, group life cover ensures that in the event of an employee’s demise, designated beneficiaries receive a lump sum payout, providing vital support during difficult times.

group life insurance policy

Why group life policy?

  1. Members can go about their daily responsibilities with the assurance that, in the unfortunate event of their premature death, their beneficiaries will receive adequate care.
  2. Accessing the funds is an option for a member to cover medical expenses related to certain critical conditions.
  3. The cover funds can be utilized by the family of a deceased member to settle loans, acquire a home, pay for school fees, and more.
  4. In situations of disability, members can utilize the funds to procure mobility aids like wheelchairs and artificial limbs.

Scope of group life insurance

  1. Primary death benefit: Group life policy offers protection against the risk of both accidental and natural death of an employee during their service with an employer. The coverage extends 24 hours a day, seven days a week, and encompasses global scenarios.
  2. Last expense cover: This provision offers financial assistance specifically for essential funeral expenses, providing support to the family during a challenging time. Claims are processed efficiently, with payouts made within 48 hours of lodging a claim.
  3. Critical illness cover: Constituting 30% of the selected death benefit, this cover becomes payable when a member contracts a qualifying disease or requires treatment for a recognized Critical Illness. It serves as a financial cushion during health crises.
  4. Permanent and total disability: In the unfortunate event of permanent disability due to accident or illness, this cover provides financial relief. It is applicable when a member is rendered unable to participate in their occupation, offering support and stability during a life-altering situation.
  5. Educational support benefit: This feature ensures that the education of the deceased member’s dependents is not compromised. It provides financial assistance for school fees, ensuring continuity in the pursuit of academic goals despite the family’s loss.
  6. Family income benefit: In the wake of the member’s passing, this benefit provides a steady income stream to the surviving family. It helps maintain their standard of living, covering day-to-day expenses and offering financial stability during a difficult period.

Embracing a Group life cover or participating in a comprehensive Group insurance scheme stands as a proactive and compassionate approach towards ensuring the well-being and financial security of employees and their families. Group life cover, with its myriad benefits such as death coverage, critical illness protection, and disability support, contributes to a resilient and supportive work environment. Choosing to implement a group insurance scheme not only fosters inclusivity and accessibility but also underscores an employer’s dedication to the long-term prosperity of their team.