Certainly! Here’s a detailed guide to Group Life Insurance, especially relevant for employers, business owners (like Jhonson Limited in Mauritius), trade associations, or unions.
👥 Group Life Insurance – In Detail
✅ What is Group Life Insurance?
Group Life Insurance is a single insurance policy that covers a group of people under one contract, typically provided by an employer or an organization to its employees or members.
It is a cost-effective way to provide basic life insurance protection to a large number of people without requiring individual medical underwriting.
🧾 Key Features of Group Life Insurance
| Feature | Description |
|---|---|
| Policyholder | The employer or organization (e.g., Jhonson Limited) |
| Covered Members | Employees or members of a group (usually 10+ people) |
| Sum Assured | Fixed amount per person (e.g., MUR 100,000 to MUR 2 million), or salary-based |
| Premium Payment | Usually paid by the employer, but can be shared or voluntary |
| Medical Examination | Usually not required for standard cover (subject to age and sum assured limits) |
| Term | Annual, renewable every year |
| Payout on Death | Lump sum paid to the nominee or beneficiary of the insured |
📦 What Does Group Life Insurance Cover?
✅ Core Cover:
- Death (Any Cause): Lump sum paid to the nominee if the employee dies during coverage.
➕ Optional Add-Ons (Riders):
- Accidental Death Benefit (ADB): Extra payout if death is due to an accident.
- Permanent Total Disability (PTD): Lump sum payout if the employee becomes permanently disabled.
- Critical Illness Cover: Pays a lump sum on diagnosis of serious illnesses like cancer, heart attack, etc.
- Funeral Benefit: Immediate payment to cover funeral expenses.
- Terminal Illness Benefit: Advance payout if the insured is diagnosed with a terminal condition.
⚖️ Advantages of Group Life Insurance
| For Employers | For Employees |
|---|---|
| Cost-effective benefit for staff | Free or subsidized life cover |
| Enhances employee loyalty & morale | Peace of mind for family support |
| Simple administration (one master policy) | Often no medical test required |
| Tax-deductible premiums (subject to law) | Option to convert to individual policy on exit |
🛑 Limitations of Group Life Insurance
- Coverage ends when employment ends (unless conversion option is available)
- Usually no maturity benefit (not a savings plan)
- Lower coverage amounts compared to personal policies
- Premiums may increase annually based on group age/claims
- May exclude pre-existing conditions or suicide (initial period)
📍 Group Life Insurance in Mauritius
Group life plans are commonly offered by Mauritian insurers such as:
- SICOM Ltd
- Mauritius Union (MUA)
- Swan Life
- Quantum Insurance
- Metropolitan Life
Coverage is typically customized based on:
- Number of employees
- Age profile
- Industry (e.g., higher risk for construction vs. office workers)
- Whether riders like accident cover, disability, or critical illness are included
📊 Example of a Group Life Plan – Jhonson Limited
| Policy Detail | Description |
|---|---|
| Number of Employees | 25 |
| Sum Assured | MUR 500,000 per employee |
| Base Cover | Natural death |
| Optional Riders | Accident, Critical Illness, Funeral Cover |
| Premium Payment | Fully paid by Jhonson Limited |
| Premium Cost (Est.) | MUR 1,500–3,000 per employee/year (est.) |
📝 Documents Typically Required
- Employee census data (name, DOB, designation, salary)
- Employer/company registration documents
- Proposal form and benefit structure
- Nominee details per employee
📌 When to Consider Group Life Insurance:
- If you’re an employer with 5+ employees
- You want to improve staff retention
- You seek tax-effective benefits
- You’re in a high-risk industry (e.g., construction, manufacturing)
Would you like help:
- Drafting a proposal request to a Mauritian insurer?
- Creating a benefit structure for your employees at Jhonson Limited?
- Comparing actual quotes or premium estimates?
Let me know your needs!