The shift is real: Like a hurricane sweeping through big businesses – multinational corporations and conglomerates, SMEs too are forced along. The emphasis is no longer on revenue and bottom line. Thanks to human rights activists and refined labour laws, employees have again taken center stage in the business world. ‘Our employees are our most valuable assets’ has become an anthem of sorts among business leaders. Some chorus it grudgingly, some campaign for it energetically. Thanks to social media crusaders and the worldwide web, organisations that insist on treating their people shabbily will be out of business soon. No, some are already out of business.

But how can responsible corporations prioritise the welfare of their people? In developing countries, the employees are the breadwinners of the immediate family – sometimes shouldering the financial burden for the extended family. Personal accident, disability or death of this breadwinner will throw the entire family into a quandary.

Yet, the dependents are the motivation behind the long hours these employees put in at work. Guaranteeing the welfare of the employees is a singular major boost for employee productivity. Some organisations have policies in place to pay a stipend to the dependent survivors of a deceased employee. Often times, such risk containment measures are expensive and unsustainable hence, the need for Group Life Insurance

Group life insurance is a yearly renewable term life insurance policy in which an employer takes a single policy to cover an entire group of employees. The Group Life Cover is a bundled policy that provides financial protection in the event of death, critical illnesses, disability and workmen’s compensation. The scope of cover is explained below;


Death as a result of either natural or accidental causes is covered. A lump sum benefit payment is made to the employer who then pays to the beneficiaries of the deceased. The limits of coverage can be designed based on annual salary multiples or flat amounts.

Critical Illness

This covers a list of predefined dreaded diseases diagnosis such as stroke, heart attack, coronary artery bypass surgery, kidney failure, etc. Normally, existing employee health insurance schemes exclude such extensive coverage. The limit of coverage is normally between 25% -50% of the Sum Assured under the Life cover.


Group Personal Accident cover will help your employees maintain against the financial burdens caused by disability resulting from accidental causes. The components are as follows:

  1. Accidental Permanent Disability

 The benefit is a lump sum payment of 100% of the death sum assured.

  • Total and Temporary Disability

The benefit is a weekly wage payable up to a maximum of about a year

Medical Expense incurred as a result of a sustained physical injury The normal benefit is a lump sum payment of 10% of the death benefit. Workmen’s compensation can be added as an additional benefit to the Group Life cover.

 An alternative solution

 Group Personal Accident or Workmen’s compensation policy – provides no cover for natural death and critical illnesses and hence falls short of the objective.

It is a visionary approach to provide Group Life Insurance as part of the employee benefit package thus a great tool to attract and retain talent within a company. There is flexibility to choose the insurance covers and amounts according to your preferences and your staff categories. Thankfully, this protection package is heavily discounted since it covers all members of a group. Speak to a life insurance company or an insurance intermediary today on Group Life/ Personal Accident Cover for your Employees.

By: Gideon Ataraire

CEO Allianz Life Insurance


Please enter your comment!
Please enter your name here