The Custodian Group Life Assurance Policy is designed to meet the requirements of the statutory group life policy under section 4(5) of the Pension Reform Act, 2014. In addition, it provides some additional benefits which could be attached to the main policy depending on the circumstances of the employer.
Custodian Life Assurance (CLA) is duly licensed by the National Insurance Commission and a registered member of the Nigerian Insurers Association (NIA).
Features
- Provides a 24-hour mortality cover devoid of geographical limitations.
- Provides cover against death from any source
- Provides instant financial assistance for dependents of the deceased.
- Provides death cover of twice the sum assured in case of accidental death (if the option is chosen)
- Provides permanent disability benefit equal to the sum assured in case of the Employee being totally and permanently disabled (optional)
Advantages
- The group life assurance policy is the cheapest insurance cover
- Prevents extra budgetary expenses resulting from unforeseen death of an employee
- Very simple to administer.
Cost Implication
The premium payable on the policy is a function of age and the level of benefit required. To this extent we require the following information to determine the premium payable:
(a) For the Individual (Employee)
- (i) date of birth (or age)
- (iii) Total Salary
- (iii) Gender (Male or Female)
(b) For the Organization (Employer)
- (i) Proposed Commencement date
- (iii) Sum Assured (i.e., benefit = minimum of 3 times
- (iii) Annual Total Salary
The group life assurance policy although mainly for the benefit of the employees and their dependents is of paramount importance to the employer as it creates a sense of belonging and peace of mind for the employees who in turn manifest same in their level of productivity.