Group life insurance in Dubai, UAE, is a type of plan that is typically opted by multinational companies and organizations. Providing life insurance to the employees improves the quality of hire and also prevents attrition. It is a little incentive that is offered to the employees to stay with the company.
The HR department of various companies has a different approach for employee retention. For example, some companies organize a lot of cultural events that involves employees and their families while others offer perks and free holidays. However, companies that offers a group term life insurance to their employees and their families. They use the insurance as an incentive because employees opting for the insurance on their own may actually find it quite expensive. Hence, group term insurance is often added to the employee’s salary package to make the organization look more attractive.
What is Group Life Insurance Plan?
Group life insurance in Dubai, UAE, coverage is a plan that covers a group of employees and their family members under one policy umbrella and it is known as the master policy. It is easy for MNCs to manage their employee’s details by choosing a large group life insurance plans. To avail this type of plan, a person needs to be a part of the group as an employee.
There are two types of plans under group insurance umbrella, one is employee contribution plan and another is employer contribution only plan.
- Employee contribution plan is coverage where the employee also contributes towards the insurance policy along with their employer. This type of plan is usually more comprehensive than the regular plans.
- Employer contribution only plan will cover the employee and his family for basic life insurance needs like hospitalization and it also has an upper cash limit usually. However, this plan does not require employee contribution and is offered by the employer as a part of the hiring package.
What Does A Group Life Insurance in Dubai Cover?
Group life insurance in Dubai, UAE, is designed for the employees and their families of a certain company. For every employee plan, there will be a primary claimer which is the employee and a secondary who are the family members usually. The group life insurance plan covers the employees for:
- Accident coverage covers the costs of hospitalization due to an accident while traveling to work and also the loss of income during hospitalization. It covers the family members for hospitalization only.
- In case there is a death of the employee, the group life insurance in Dubai, UAE, provides the remaining family members the total amount of the insurance plan that was insured as per group insurance rules. For example, under the umbrella of group life insurance in Dubai, UAE, each employee may be eligible or would have been insured for an amount 25 lacs. So the family will be eligible for receiving this amount from the insurance company. However, once the settlement is done, the family will not be included in the insurance plan anymore. This coverage is given only to the primary insurance holder which is the employee.