It is Life Insurance offered by an employer or a large-scale entity (i.e. association or labour organisation) to its workers or members. Group Life Insurance is typically offered as a piece of a larger employer or membership benefits package.

By purchasing coverage through a provider on a "wholesale" basis for its members, the coverage costs each individual worker/member much less than if they had to purchase an individual policy. Those receiving coverage may not have to pay anything "out of pocket" for policy benefits or they may elect to have their portion of the premium payment deducted from their pay check.

The employer or organisation purchasing the policy for its workers or members retain the master contract. People who elect coverage through the group policy receive a "certificate of credible coverage," which will be necessary to provide to a subsequent insurance company if the individual leaves the company or organisation and terminates their coverage.

Disability Insurance is one of the least understood types of insurance, but also one of the most important. Many people mistakenly believe that workers who become disabled will receive disability income through Worker’s Compensation. Employees don’t qualify for Worker’s Compensation unless the disabling illness or injury happened on the job.

Employer-sponsored disability income insurance is much less restrictive and falls into two main categories. Short-term Disability Insurance plans usually offer benefits that are paid for a maximum of 26 weeks, while long-term Disability Insurance benefits generally continue for the length of the disability or until retirement age.

Cost can be affected by adjusting the maximum monthly benefit, benefit periods and waiting periods before benefits begin. This is another area where it’s possible to allow employees to purchase additional coverage either by purchasing increased benefits under the group programme or through a voluntary benefits programme.

Umvuzo Health Plans

We offer a combination of network and fee-for-service options. All the options give members access to private healthcare, as well as the utilisation of any and all private hospital groups in South Africa.

Activator

Activator Option is designed for individuals earning less than R3 850 as we believe all people deserve access to good medical care. This Option was specifically formulated to give first time medical aid users access to private healthcare making use of the Universal Network and great private hospitals.

Ultra Affordable

Ultra-Affordable Option is ideal for young, healthy single individuals who lead an active & healthy lifestyle, who will be fully covered with private healthcare by using the Universal Network and given access to all private hospitals. The premium on this Option is broken down into two different categories to increase affordability.

Standard

Standard Option is our all-rounder Option, which include great benefits for the whole family and is ideal for middle income earners. This Option allows members to have more secondary benefits, makes use of the Universal Network and gives access to all private hospital groups.

Supreme

Supreme Option is the traditional, fee-for-service Option aimed at members with the need for higher medical care. This Option gives members Freedom of choice when it comes to doctors and specialists. There are super benefits on the Supreme Option and therefore it is a sought after choice.

Extreme

Extreme Option is aimed at members who need access to a larger amount of benefits. This 'freedom of choice,' fee- for-service Option offers members who may have higher healthcare needs great support, as well as to large families who need greater medical cover.

The two big differences between a Pension and a Provident Fund relate to:

1. The tax treatment of contributions and
2. The annuitisation requirement at retirement, which is the preferred option depends on the employee’s individual circumstances, and what they intend to do at retirement with their savings. To the extent that most people should not be entrusted with a cash lump sum at retirement (because they will likely then outlive their savings), the Pension Fund option is the more prudent one.
   
   In terms of the proposed retirement reform, which may come into effect by March 2015, the tax treatment and annuitisation requirements of Provident Funds will align with that of Pension Funds. Although vested rights will be protected, for younger savers, the question “Pension or Provident Fund?” will then become irrelevant. You can transfer your savings tax-free from a Provident Fund to a Pension Fund on changing jobs, but you cannot transfer from a Pension to a Provident Fund.

With a Pension Fund, both the employer (up to 20%) and the employee (up to 7.5%) can claim their contributions for tax. Pension Fund members must buy an annuity with at least two-thirds of their retirement benefit.

Under current law, only the employer can claim a tax deduction for Provident Fund contributions. If employees contribute in their own name (i.e. not by way of a salary sacrifice), then this money is returned to them tax-free at retirement (added to the tax-free cash lump sum). The provident fund arrangement is probably more suitable for lower income earners, who do not benefit from the tax deduction as their income is below the tax threshold. As an offset, a provident fund offers them more flexibility on retirement and provident fund members can take the full benefit as cash.

A preservation fund enables your retirement savings to stay invested if you resign from your employer, or are dismissed or retrenched. You cannot, however, make additional contributions to your Preservation Fund. You should consider a Preservation Fund when you leave your employer. The primary objective of your Pension or Provident Fund is to build a financial asset that will provide you with regular income once you retire. If you draw your retirement savings early, then you not only forgo your savings, and the investment return these savings would have generated up to your retirement date, but also some important tax advantages.

MEC offers cover that is personalised, simple and cost effective. Dying is expensive and therefore we strive to develop solutions to ensure the least amount of disruption for the family. Paying out a policy within 48 hours of the death of the insured, funeral cover takes care of the cost involved with regards to the funeral arrangements. MEC provides Funeral Plans that cater for the insured and their family. For as little as R30p/m you can provide for your family’s financial need in the case of death.

Tailor-made solutions to protect your employees' financial well-being. In Risk Insurance Benefits including life, disability income protection, critical illness. We offer you the flexibility to choose a definition of disability that best meets your needs.

“A Section 14 Transfer is the move of assets funding a member's benefits in an approved fund to another approved fund or to any other person. The provisions of Section 14 of the Pension Funds Act 1956 govern the transfers between Retirement Annuity Funds”.

Click here to download Section 14 Guidlines