GLICO :: Gemini Life Insurance

GLICO DEPOSIT ADMINISTRATION SCHEME

PREAMBLE
The important role played by employees in every organisation cannot be under-estimated. It is in line with this that employers, like your goodselves who appreciate the value of this asset, do all they can to equitably reward the efforts of their hard-working employees. In addressing such needs they even stretch themselves to provide for their protection against accident and illness in the course of their employment. We believe their goal is to achieve a well-motivated workforce. And, if this is what you are after, then the GLICO DEPOSIT ADMINISTRATION SCHEME is what you need. With the GLICO Deposit Administration Scheme you would not only be ensuring your employees’ welfare now and when they retire or earlier withdrawal from your employment but fulfilling a promise of Group Personal Accident and Critical Illness Benefits to management and staff.

WHY HAVE A GLICO DEPOSIT ADMINISTRATION SCHEME
There are several important reasons why you should secure a GLICO Deposit Administration Scheme to create a nest egg to safe-guard your employees;-

• Most disciplined way of saving for retirement
• To look after staff in old age when they reach retirement
• To provide for dependents after an employee dies
• To reward hardworking, loyal and dedicated staff
• To match competitors and enhance staff morale
• To help in retaining and recruiting high calibre staff
• Efficient roll up of investments

THE GLICO DEPOSIT ADMINISTRATION SCHEME
Designed for employers where stand alone schemes would be economically viable. The Scheme is a defined contribution arrangement where the cost is pre-determined but the future benefit at retirement or earlier withdrawal is unknown. Thus the benefit at retirement/withdrawal is therefore based on an accumulation of contributions less any risks premium and administration fees plus full investment returns.

Advantages
	With contributions fixed as a percentage of the salary bill the Company’s cash flow budgeting and financial projections are predictable in the medium to long term.
	Each employee’s proportionate share of the fund is readily identifiable at any given time.
	Scheme is simpler to administer.

Challenges
	Benefits at retirement or earlier withdrawal are unknown and will depend on investment returns and prevailing immediate annuity rates at retirement.
	The employee tends to assume a greater degree of investment risk although he/she also gains from superior investment performance.

HOW THE SCHEME WORKS
Upon earlier termination or retirement from service, the insured (employee) can choose to take either of the following benefits:

(1) Gratuity Benefit
A lump sum of money payable outright at the end of employee’s service.

(2) Annuity Benefit
Annuity income payable over a period of five (5) years certain; or as may be determined by employee.

(3) Hybrid Benefit
A combination of both (1) and (2) with 50% of the principal sum payable as gratuity/end-of-service benefit and the remaining part payable as annuity benefit over a period of five (5) years certain; or as may be determined by employee.

The INVESTMENT CASH ACCUMULATION also enables the insured to obtain money to meet certain short-term obligations such as school fees and other short-term commitments. It can also be arranged to partly accommodate house purchase.

(1) Scheme Loans
A loan granted to the insured (employee) based on the accumulated value of the investment account of the insured.

(2) Partial Withdrawal
The insured can withdraw a portion of the cash value of the accumulated investment account under the partial withdrawal provision after a minimum of three (3) years contribution for home purchase.

OPTIONAL INSURANCE BENEFITS
The GLICO Deposit Administration Scheme provides optional group life assurance benefits designed to give protection during the employee’s term of service. The Scheme can be designed to provide ample and comprehensive protection in the following risk areas;
	A 24-Hour Death Benefit
	A 24-Hour Personal Accident Benefit including permanent and temporary disablement benefits enough to satisfy the requirements of the Workmen’s
	Compensation Act
	Hospitalisation Income Benefit and
	Critical Illness or Terminal Illness Benefit

1. Death Benefit
If an insured (employee) dies during the term of the SCHEME, the sum assured payable under the death benefit (an amount between one (1) time and five (5) times the employees annual salary or a stated amount) will become payable to the policyholder.

2. Personal Accident Benefit
If an insured is involved in an accident and sustains bodily injury or illness, the SCHEME will pay the amount of benefit (one (1) time to five (5) times annual salary or a stated amount) payable under the group personal accident benefit. This includes accidental death benefit, total and permanent disablement benefit, dismemberment benefit, accident weekly income benefit and medical expense benefit.

3. Hospitalisation Income Benefit
If an insured is hospitalised during the term of the SCHEME, an amount of daily income (stated amount) benefit shall be payable as Hospitalisation Income Benefit for the number of days the employee spends in hospital. The benefit may be payable up to a maximum period of one year.

4. Terminal Illness or Critical Illness Benefit
In the event that the life assured is diagnosed as having any of the terminal illness listed below during the lifetime of the policy, the benefit payable will be the capital benefit payable. (an amount one (1) time to five (5) times annual salary or stated amount) Terminal Illness or Critical Illness includes; malignant cancer, stroke, kidney failure, liver failure, heart attack and paraplegia.

PAYMENT OF BENEFITS
All benefits are payable to the POLICYHOLDER (EMPLOYER) unless otherwise directed by the policyholder to be paid directly to the life insured (employee)

AGE LIMIT
Available for ages 18 to 59 years.

METHOD OF CONTRIBUTION
Contribution to the SCHEME may be made by one of these methods:
	Employee only – Payment through salary deductions by the employer.
	Employee and Employer – Payment by both the employee and Employer (Joint Contribution).
	Employer only – The employer alone provides the contribution for the employee (Non contributory).