Employers often face financial challenges (both short and long term) in terms of wages allowances, medical, NSSF contributions gratuity and or terminal benefits. This plan helps employers or group managers to mobilize savings to cater for future financial needs to their members. Premiums are paid on a monthly basis. The company or employer is a policy holder while the employee is a beneficiary. Coverage is between 18 and 65 years of age.
- Assured payment of benefits and employees get lump sum on top of their pension.
- Flexibility in receiving benefits. Either on leave of service at a particular job, or upon death.
- One way to motivate and retain employees, as it can be used as supplementary cover to gratuity and terminal benefits.
- Assured of a decent send off in case of death of an employee.
TO THE EMPLOYER:
- Payments can be made without affecting company’s finances since the source will be from their savings.