Group Life Insurance Guide
Understanding Group Life Insurance
What is Group Life Insurance (GLI)?
Group Life Insurance is an insurance policy that provides coverage for the death of an employee due to sickness, natural, or accidental causes during their period of employment with the company (Hugo in this case).
This policy does not cover death resulting from suicide or the execution of a judicial sentence of death.
Importance and Benefits of GLI
The loss of a loved one can cause not only emotional trauma but also financial distress. This insurance coverage ensures that beneficiaries of the deceased employee receive financial compensation to help them navigate such difficult times.
- The insurance payout is three times the total annual pay of the employee.
- The payout is split among all beneficiaries based on the percentage allocated to each.
Example Calculation:
If an employee’s annual gross salary is N1,000,000, then:
- Total insurance payable = N3,000,000
- If the employee has two beneficiaries, each allocated 50%, they will each receive N1,500,000.
Eligibility for Group Life Insurance
- All employees are eligible.
- The coverage remains valid as long as the employee is in active employment with Hugo.
- Hugo covers all premium payments, so there are no monetary obligations for employees.
- Employees must provide beneficiary information to complete their enrolment.
Selecting and Providing Beneficiary Data for Enrolment
Who Can Be a Beneficiary?
A beneficiary is anyone the employee chooses to receive the insurance payout in case of their demise.
- Typical beneficiaries: Close family members (e.g., spouse, children, parents, siblings).
- Discretion: Employees can choose anyone, but beneficiaries must be over 18 years old (minors are not eligible).
Selecting Beneficiary(ies)
- Employees can allocate payouts to one or multiple beneficiaries.
- There is no maximum limit to the number of beneficiaries.
- The total allocation must equal 100%.
Examples of Allocation:
- Two beneficiaries → 50% / 50%
- Three beneficiaries → 30% / 30% / 40%
- Three beneficiaries → 60% / 20% / 20%
The form provides automated guides to ensure allocations sum up to 100%.
Beneficiary Data Requirements
Employees must provide the following details for each beneficiary:
a) Full Name (Title, First Name, Last Name) e.g., Mr. Danladi Bamidele
b) Date of Birth
c) Relationship with Employee (e.g., Mother, Father, Brother, Sister, Friend)
d) Percentage Allocation (e.g., from 1% to 100%)
e) Phone Number
f) Permanent Address
Submission Process
- Submit all required data through the official form.
- Beneficiary data will be stored securely in Factorial.
- Employees will receive periodic reminders to review and update their beneficiary information.
- All information is protected in compliance with data privacy policies.
Submit Beneficiary Data Here
If you have any questions, please contact the People Operations Team via:
📧 peopleops@hugotech.co