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Easy Glossary Of Employee Benefit Descriptions

Understand how employee benefits and group life insurance work with our easy glossary of employee benefit descriptions

What is group life insurance? What’s a provident fund? We have put it all together in an easy glossary of employee benefit descriptions so that group life insurance and all related cover is simple to understand.

Retirement Benefit (Provident Fund)

  • This is a Defined Contribution Pension Scheme arrangement
  • The retirement benefit is determined by accumulated contributions, as well as the investment growth in those contributions

Group Life Assurance (Death Benefit)

  • This is a lump sum benefit
  • It is either a multiple of the salary amount or a flat benefit amount
  • It is payable to the policyholder upon the death of a deceased employee

Lump-Sum Disability

  • This is a lump sum benefit
  • It is either a multiple of the salary amount or a flat benefit amount
  • It is payable to the policyholder upon the permanent and total disablement of an employee, according to the following definition of disability: An employee will be considered totally and permanently disabled when they are unable to perform the material and substantial duties of:
    • Their own occupation
    • Any occupation where they could reasonably be expected to be educated, trained, or experienced and for any employer

Personal Health Insurance (PHI)

  • This is an income replacement benefit
  • It typically pays 75% of an employee’s monthly salary each month while they conform to the below definitions of disability.
  • Initial period: 24 months
  • An employee is considered disabled if they are unable to perform their own occupation for any employer.
  • The subsequent period after 24 months: An employee will be considered totally and permanently disabled when they are unable to perform the material and substantial duties of:
    • Their own occupation
    • Any occupation where they could reasonably be expected to be educated, trained, or experienced for any employer
    • The benefit will continue while the above definitions are met but will terminate at the earliest of:
    • Recovery
    • Return to work
    • Death
    • Normal retirement age

Critical Illness

  • This is a lump sum benefit
  • It is paid either as a multiple of the salary amount or a flat benefit amount
  • It is paid upon the diagnosis of 11 pre-defined illnesses
  • Of these illnesses, 3 are considered scaled benefits, where the payout is dependent on how severe the illness is
  • The balance of illnesses payout in full if the policy definition is met

Group Funeral Scheme (GFS)

  • A funeral benefit typically covers an employee, their spouse, and up to 4 children at a single premium cost
  • The benefit is usually scaled as follows, where the percentages represent the percentage of the employee’s funeral benefit:
    • Main member: 100%
    • Spouse: 100%
    • Children 14-21: 100%
    • Children 06-13: 50%
    • Children <6 (incl. SB): 25%

Accidental Death Benefit

  • This is a lump sum benefit
  • Paid either as a multiple of the salary amount or a flat benefit amount
  • It is payable to the policyholder upon the death of a deceased employee when death is caused by an accident

Accidental Disability Benefit

  • This is a lump sum benefit
  • It is either a multiple of the salary amount or a flat benefit amount
  • It is payable to the policyholder upon the permanent and total disablement of an employee but is only payable if the cause of disability is an accident and according to the following definition of disability:An employee will be considered totally and permanently disabled when they are unable to perform the material and substantial duties of:
    • Their own occupation
    • Any occupation where they could reasonably be expected to be educated, trained, or experienced for any employer

Temporary Total Disability (TTD)

  • This is an income replacement benefit
  • It typically pays 75% of an employee’s monthly salary each month while they conform to the below definitions of disability
  • The maximum period is defined – anything from 6-24 months.
  • An employee is considered disabled if they are unable to perform their own occupation for any employer
  • An employee will be considered totally and permanently disabled when they are unable to perform the material and substantial duties of:
    • Their own occupation
    • Any occupation for where they could reasonably be expected to be educated, trained, or experienced for any employer
 

We trust that this glossary of employee benefit descriptions has helped you understand employee benefits.
If you’re in any doubt, give us a call.

Call: +266 2221 3500

For claim-related queries, email: lifeclaims@lnighollard.co.ls

For queries or policy changes, email: lifeuw@lnighollard.co.ls

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Mon - Fri: 08:15 – 16:30