Group Life Insurance Online in UAE

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Group life insurance in the UAE is quickly gaining popularity as businesses recognise its value in providing financial security and benefits to employees. 

As of 2024, an increasing number of employees are covered under group life insurance policies, reflecting a trend towards more comprehensive employee benefits packages. 

What is Group Life Insurance?

Group life insurance is a type of insurance that offers coverage to a group of people, generally employees within a company. 

This insurance plan is usually provided as part of an employment benefits package. Here, the employer or a related entity holds the master policy and each employee covered under this plan is issued a certificate as proof of insurance. 

A notable advantage of group life insurance is its cost-effectiveness compared to individual life policies. In the unfortunate event of the death of an employee while covered by the policy, a predetermined benefit is paid out to the beneficiaries designated by the employee.

Additionally, group life insurance plans can be customised to include various additional benefits such as critical illness coverage, accidental death, and dismemberment insurance, which further bolster the policy's value to employees​​.

Furthermore, employers can also include the risk of employer liability in their group life insurance policies. This addition eliminates the need for separate workmen compensation insurance, providing comprehensive coverage and simplifying the management of employee benefits.

Difference Between Individual Life Insurance and Group Life Insurance

Here's a table highlighting the distinctions between individual life insurance and group life insurance-

Aspects

Individual Life Insurance

Group Life Insurance

Ownership

An individual owns the policy

An employer or group owns the policy- employees are issued certificates of insurance under the group policy

Portability

Policies are portable- they remain in force regardless of job status, as long as premiums are paid​

Not portable in most cases- coverage typically ends when an employee leaves the job unless converted to an individual policy

Cash Value

Some policies (like whole life or universal life) offer a cash value component that can grow over time​ 

Group life insurance policies​ typically, don’t accumulate any cash value

 

Features and Benefits of Group Life Insurance

Group Life Insurance offers several features and benefits that provide value and security to employers and their employees alike. 

Listed below are some key highlights-

  • Basis of Sum Insured or Principal Sum: The insurance coverage amount is typically based on a multiple of an employee’s salary so that benefits are proportional to earnings or employers can take fixed sum Insured based upon categorisation of employees
  • Scope of Coverage: Coverage is extensive and offered 24 hours a day worldwide- whether the employees are on duty or not. In other words, employees are covered at all times, irrespective of where they are including duty on offshore installations.
  • Period of Insurance: Policies are set for a specific term, usually 12 months.
  • Free Cover Limit: There is a specified limit up to which employees are covered without requiring medical underwriting.
  • Governing Law & Jurisdiction: The policy is governed by the laws of the UAE, which provides a clear legal framework for handling claims and disputes.
  • Premium Payment: Premiums are payable annually in advance by the employer.Employee addition and deletion is on pro-rata premium basis.
  • Underwriting Conditions: Increased cover beyond the free limit may require medical underwriting, thus offering flexibility and options for higher coverage needs.

Inclusions of Group Life Insurance

Given below are the general coverage features of group life insurance in UAE-

  • Death Benefit: Payment of the principal sum to the beneficiary in case of death of the insured employee due to any cause
  • Accelerated Terminal Illness Benefit: Advance payment of part of the sum insured if the insured is diagnosed with a terminal illness that i expected to lead to death within 6 months
  • Permanent Total Disability (Accident): Lump sum payment if an accident permanently disables the insured and prevents them from working
  • Permanent Partial Disability (Accident): Payment of a percentage of the sum insured depending on the severity and type of partial disability caused by an accident
  • Temporary Total Disability (Accident): Weekly payments if an accident causes temporary, total disability, preventing the insured from working for a temporary period
  • Accidental Medical Expenses: Reimbursement of medical expenses incurred due to accidental bodily injuries
  • Repatriation Expense: Coverage of expenses for repatriating the remains of the deceased employee- this may include transportation and burial costs as well as economy airfare for an accompanying person
  • Passive War Cover: Passive War Cover provides protection for employees in the event of injury or death caused by war-related activities.Even if they are not actively participating in the conflict, the policy covers them.
  • Critical Illness Cover: Critical Illness Cover offers financial support to employees diagnosed with severe illnesses such as cancer, heart attack, or stroke. It helps them manage medical expenses and provides a safety net during the treatment and recovery period.

Exclusions of Group Life Insurance

Some of the key exclusions of Group Life Insurance are as follows-

  • War-related Incidents: Any death or disability resulting from war, invasion, military operations, or civil unrest
  • Illegal Activities: No coverage if the insured engages in any illegal acts or criminal activities
  • Self-inflicted Injuries: Injuries or death resulting from self-inflicted harm or suicide are not covered
  • Hazardous Activities: Exclusions apply to deaths or injuries resulting from hazardous sports or adventurous activities unless specifically included
  • Pre-existing Conditions: Some policies exclude pre-existing medical conditions unless disclosed and specifically covered under the policy terms
  • Drug or Alcohol Abuse: Deaths or injuries resulting from drug or alcohol abuse are typically excluded
  • Nuclear, Biological, or Chemical Exposure: Exclusions for deaths or disabilities due to exposure to nuclear, biological, or chemical materials

When to Get Group Life Insurance?

When considering group life insurance, employers should look into obtaining coverage as part of their employment benefits package. 

Generally, the workmen compensation policy is always taken out by the employer. However, the decision to get this insurance is influenced by the company’s offerings.

Generally, the decision to get this type of life insurance is influenced by the company's policy offerings(Employee benefit policy, as policy is always taken by the employer) .

Here are the general instances when you, as an employer, might consider going for group life insurance in UAE-

  • Upon employment: If the employer offers group life insurance as part of the benefits package
  • Financial liabilities: It helps in settling  debts or mortgages that could burden the family in case of employees  untimely demise(Natural or Accidental or sickness)
  • Health concerns: Group life insurance can offer additional financial security if you have exposure to occupational health risk  or work in a high-risk occupation/industry.

Important: Each insurer has different propositions that may vary. For this reason, it is important to review your policy and understand the specific terms and conditions provided by your employer's group life insurance plan.

How Does Group Life Insurance Work?

Let’s understand how Group Life Insurance works:

  • Policyholder and Coverage: Typically, an employer or an organisation becomes the policyholder. The group life insurance plan covers all eligible employees or members, financially protecting against death or disability.Eligible  Dependents can also be covered but on reduced sum insured which is linked with the sum insured for Principal member. It's usually part of a comprehensive employee benefits package​​​​​​.
  • Eligibility and Enrolment: all active Employees or group members usually aged between 18 to 70 years are eligible for death coverage. The process involves nominating beneficiaries and may include automatic enrollment for new employees. It may also involve the possibility of updating the policy with any changes like new hires or departures​​​​.
  • Premiums and Benefits: Group life insurance premiums are generally lower compared to individual life insurance policies. The insurance can cover a range of benefits from basic life insurance to accidental death, dismemberment, critical illness, and more. 
  • Claims Process: In the event of a claim, such as the death or disability of an insured member, the process typically involves notifying the insurer, filling out claim forms, and submitting required documents. The insurer then reviews and settles the claims, providing a lump sum payment to the beneficiaries or the affected member​​.
  • Policy Management: The employer or organisation manages the policy and may add or remove members as needed. The insurer may offer support services like 24/7 helplines, tailored policies, and assistance with claim submissions and policy renewals​​​​​​.
  • Support and Services: Many insurance providers offer additional support services such as 24/7 call centres for assistance, in-house claims departments for efficient claims handling, and utilisation analysis to help adjust and improve the benefits package as per the employees' requirements.

Cons of Group Life Insurance

Let’s take a look at some of the key disadvantages of group life insurance-

  • Group life insurance usually has lower coverage amounts, which may be insufficient to meet all the financial needs of the beneficiaries.
  • Coverage is tied to the job. So if you leave the company, retire, or are terminated, you typically lose your insurance coverage.
  • Unlike individual life insurance, group policies usually cannot be transferred to a personal policy without undergoing medical underwriting and potentially higher costs.
  • Employees have little to no ability to tailor the policy to fit their specific needs or preferences. This is because coverage options are standardised across the organisation.
  • Some policies may have exclusions or limitations based on the employee's health status or activities, thereby limiting the policy's effectiveness.

Eligibility Criteria for Group Life Insurance

Tabled below are the eligibility criteria for group life insurance-

Aspects

Eligibility Criteria

Employment Status

All actively at work, full-time, and permanent employees are eligible

Minimum Employees Required

10

Location

Employees must be(having UAE employment visa) based in the United Arab Emirates (UAE)

Age Limit

Coverage provided from 

  • 18 to 70 years for death due to any cause
  • Up to the age of 65 years for other benefits

Medical Underwriting

Employees above the Free Cover Limit may have to undergo medical underwriting to increase their cover up to the full Sum Insured amount

Work Continuity

Coverage can be reinstated for members post-COVID-19 recovery subject to them meeting actively at work conditions, i.e., following 14 days of continuous work on a full-time basis

Valid Visas

All members must be located within the locations declared and hold valid Employment/Residence Visa/ID

Requirements for Group Life Insurance

To apply for Group Life Insurance, you must provide a list of your employees along with specific information for each one. 

Be prepared to submit these details for each employee-

  • Staff Number
  • Employee first name
  • The job title or role of the employee within the company.
  • Employee’s gender 
  • The birth date of the employee
  • The total earnings of the employee before any deductions
  • The annual salary of the employee
  • Nationality of the employee
  • Classification of the employee within the company's internal structure or for insurance purposes
  • GLPA SI (Group Life Personal Accident Sum Insured): The amount of coverage each employee is to be insured for under the policy

How Can I Apply for Group Life Insurance?

You can easily apply for Group Life Insurance through the official website of Policybazaar UAE. Our customer support team is dedicated to assisting you throughout the process for a smooth and straightforward application experience. 

Once you're on our website, you'll find all the necessary details and steps to guide you. If you have any queries or need assistance while filling out the application forms or understanding the different coverage options, we are ready to help you!

Our team is just a call or click away so that you get the support you need to secure the right insurance for your team. 

Premiums for Group Life Insurance

Group Life Insurance premiums(minimum premium) start from AED 1,000. Note that the premium for each policy depends on various factors, including-

  • Number of Employees: Larger groups may affect the premium rates due to the pooled risk
  • Age of Employees: Older employees might increase the premium costs due to a higher risk of claims
  • Occupation Risks: Jobs with higher physical risks may carry higher premiums
  • Salary Levels: Higher total insured sums linked to higher salaries can increase premiums
  • Health Status: The overall health profile of the group can influence rates

Terms and Conditions for Group Life Insurance

Mentioned below are some general terms and conditions applicable to group life insurance-

  • Policy Cancellation: The insurance cover will be automatically cancelled if the number of insured employees falls below the minimum required by the policy. In this case, the potential continuation may be subject to individual underwriting and at specific rates.
  • Change in Group Size: Any significant change in the number of group members, such as a 25% increase or decrease, requires adjustment to the policy terms- and potentially the premiums.
  • Actively at Work Requirement: Coverage is contingent upon the employee being actively at work on the day the policy commences or when added to the policy.
  • Claims Notification: Claims must be reported within a stipulated time frame as detailed in the policy document.
  • Special Risks Exclusion: Certain high-risk activities or occupations may not be covered unless specifically underwritten and accepted by the insurer.