Compulsory Life Insurance Coverage for GSIS Members
GSIS provides two (2) types of compulsory life insurance coverages for its members: the Life Endowment Policy (LEP) and the Enhanced Life Policy (ELP).
ELP provides an automatic yearly insurance coverage to new members of GSIS based on their monthly compensation. The objective of ELP is to provide an enhanced death benefit for the member’s family.
The following are the policy features of LEP and ELP:
|Implementation Date||Up to July 31, 2003||August 1, 2003 onwards|
|Plan Type||Age Bracket Insurance
Plan30 years old & below E-4531 years to 40 E-5541 years to 59 E-6560 years & over OL
|Yearly Renewable Term Insurance|
|Amount of Insurance(AOI)||
An Insurance Factor is applied to the Annual Salary to get AOI
|Last Monthly Salary x 12 x 1.5|
|Policy Loan||50% of the Cash Value||90% of the Termination Value|
|Maturity Value||Original Amount of Insurance plus Supplementaries||Not Applicable|
|Dividends||Based on the Policy Reserves *||Based on the Accumulated Termination Value **|
* Reserves represent the ideal amount that must be set aside for the policy to provide the promised benefits.
** Termination value represents the value earned by ELP, which accumulates at a rate equivalent to 25% for every monthly life insurance premium due and paid in full.