1. COURSE TITLE : LIFE INSURANCE COURSE CODE: INS 432
IKENNA NWACHUKWU:
DANIEL EZELIBE:
BAYODE EMMANUEL TEMIDAYO:

2. EMPLOYEE BENEFITS
Employee benefits are non-salary compensations that employers give to employees to provide financial security for them and their families.
These benefits are mainly indirect, non-cash compensations that are either partly or fully paid for by the employers
Examples of employee benefits given by employers are;
Medical insurance
Retirement plan (pension plan)
Paid vacations, holiday or sick leave
Health plan
Life insurance

3. ADVANTAGES OF EMPLOYEE BENEFITS
To Employees
1. Provides financial security for employees and their families.
2. Increases job satisfaction and employee morale.
3. Healthier employees
To Employers
Increases employees productivity.
Helps employers to attract (i.e. recruits) and retain top talent.
Increases employees commitment to meeting the companies goals and vision.
Tax advantage of deducting plan contribution

4. GROUP INSURANCE
Group insurance is a type of insurance coverage whereby a single contract covers an entire group of people.
The employer in this case is the policy holder and keeps that actual insurance policy which is called the master contact while employees receive a certificate of insurance to show that they are insured.

5. CHARACTERISTICS OF GROUP INSURANCE
It covers an entire group of people under one contract.
It costs less than individual insurance since employers usually pay all or part of the cost.
The group must not be created just for the sole aim of getting insurance.
Does not require individual evidence of insurability (i.e. not individually risk-based) but uses group selection of risks.
Uses experience rating in the insurance plans so as to be able to adjust premiums.
The plan offers the same benefits to all members of the group.

6. GROUP LIFE INSURANCE PLANS
This life insurance plan is widely used and is relatively inexpensive.
The major types of group life insurance currently used are;
Group Term Life Insurance
Group Accidental Death and Dismemberment Insurance
Group Universal Life Insurance

7. GROUP TERM LIFE INSURANCE
Is usually renewed yearly.
Provides employees with low cost protection during their working careers.
It remains active as long as the employee is part of the group.
It can be converted to an individual cash-value policy within 31 days of employee leaving the group without evidence of insurability.
It cannot be converted to an individual term insurance policy.
Used by commercial banks and some lending institutions to insure the lives of debtors.

8. ADVANTAGES DISADVANTAGES
Employees can use it to supplement their own individual life insurance policies
It can also include spouse and dependent children.
Low cost protection.
DISADVANTAGES
Insurance is temporary and is terminated when the individual is no longer part of the group
Is expensive for older workers to convert it to an individual policy after retirement.

9. GROUP ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE (AD&D)
AD&D is included in many group life insurance plans and pays additional benefits to employees in case of death or certain types of body injuries such as paralysis, loss of speech etc.
Many plans also have voluntary AD&D which employees can purchase. This voluntary coverage is paid for solely by the employees

10. GROUP UNIVERSAL LIFE INSURANCE
Group universal life insurance can also be made available to employees in addition to group term life insurance.
Major characteristics of this plan are;
a. Plan Design: two approaches are used to design this plan. For the first approach which is a one plan program (i.e. term insurance), the employee pays only for mortality and expense charges while in the second approach, there are 2 plans used whereby the employee wants universal life insurance included with the term insurance and is required to pay higher premiums so as to accumulate cash values.
b. Amount of insurance: employees can select the amount of guaranteed coverage (one-five times annual salary) with no evidence of insurability.

11. c. Mortality and expense charges: most groups using this plan have a guaranteed mortality rate for three years before they can be regarded as experience-rated.
d. Premium flexibility: premiums can be reduced, increased or eliminated.
e. Loans and withdrawals: employees can make policy loans and withdrawals.
f. Options at retirement: Employees have the option of continuing the coverage after retirement whereby the insurer bills the individual directly or they can take up an option of terminating the coverage and withdrawing the cash value.
g. Dependent coverage: dependents such as spouse and children can be covered under this plan by adding a term insurance rider.

12. CONCLUSION
Employee benefits are important in personal risk management program for employees.
These benefits serve as a source of financial security for employees and their family.
It is important for employers to give attractive benefits so as to be able to recruit and retain quality staff.
Group insurance which covers many persons under one contract reduces the cost of insurance to both employers and employees.