Group Life Insurance

Group Life Insurance is a valuable employee benefit in Kenya, designed to provide financial security for employees and their families in the event of death or disability. This insurance is typically taken out by employers to cover their employees as a group, ensuring that they receive essential support during challenging times.

Key Features

1. Death Benefit
   
   • Provides a lump sum payment to the beneficiaries of an employee who passes away while in service, covering deaths from any cause except those explicitly excluded (e.g., active war participation).
   • Coverage amounts can vary based on the employee’s salary and age, typically ranging from KES 500,000 to KES 10,000,000.
2. Permanent Total Disability (PTD)
   
   • Offers compensation if an employee becomes permanently disabled due to an accident or illness.
   • The benefit amount is usually equivalent to the death benefit, ensuring financial support for the affected employee.
3. Funeral Expenses
   
   • Covers immediate burial costs upon the death of an insured member, with benefits typically ranging from KES 50,000 to KES 500,000, payable within 48 hours of notification.
4. Critical Illness Cover
   
   • Provides a lump sum payment (often up to 30% of the total sum assured) upon first-time diagnosis of specified critical illnesses such as cancer, heart attack, or stroke.
5. Temporary Total Disability (TTD)
   
   • Offers weekly benefits for employees unable to work due to temporary disability caused by accidents or illnesses, typically covering full salary for up to one year.
6. Optional Benefits
   
   • Additional coverage options may include spouse and children funeral expenses, retrenchment benefits, and income replacement during periods of disability.

Pricing Plans

• Basic group life insurance plans start from approximately KES 1,500 per employee per year.
• Comprehensive plans that include additional benefits can range from KES 3,000 to KES 15,000 annually per employee based on coverage levels and organizational size.

Insurers Offering Group Life Insurance

Several reputable insurance providers in Kenya offer group life insurance products:

• Jubilee Insurance
• Prudential Life Assurance
• Sanlam
• Heritage Insurance
• AIG Kenya
• Britam
• APA Insurance