Group Risk Cover

Employers can provide group risk benefits to their employee’s in the form of employee benefits which can include benefits such as life, disability cover and can cover their dependants as well.

Group life assurance benefits are normally added to pension schemes or provident funds. Group life assurance benefits can also be provided on their own.

Advantages for the Employer

The group life scheme can be used as an attractive employee benefit by the employer to attract and retain valuable employees by offering to provide for employees’ dependants, should employees die while in the service of the employer.

The life cover is relatively inexpensive.

The employer’s contributions will be tax deductible, if the group life scheme is approved as a pension or provident fund. If it is unapproved then the contribution will still be deductible, provided that the company can prove that the expenses are incurred in the production of income.

Advantages for the Employee

By receiving group life cover employee’s will receive cover free of medical evidence up to certain amounts. Among lower salaried employees, this is a method of ensuring a minimum amount of life cover for employees who normally cannot afford it, and securing the interests of the employees’ dependants. Disability is an option that can be added to the scheme for its employee’s.