Enhanced Life Policy (ELP)
The ELP seeks to enhance the death benefits of your family and, at the same time, to simplify the administration of the compulsory life insurance component of the GSIS benefit program.
What are the features of the ELP?
The insurance coverage shall be a yearly term renewable life insurance cover based on your fixed monthly compensation.
The policy shall have neither a maturity value nor fixed insurance cover.
The computation of insurance cover shall be based solely on your annual compensation while you are in government service, multiplied by a predetermined amount of insurance (AOI) factor.
Your age and length of service will no longer be a factor in determining the amount of your insurance coverage.
The ELP will also earn cash value in the form of termination value, which you can withdraw upon separation or retirement and shall be the basis of your yearly cash dividends and policy loan.
An automatic premium loan (APL) facility secured against the policy’s termination value shall also be provided to answer for nonpayment of premiums.
The ELP may lapse if no payment of premiums is effected within a prescribed period but may automatically be reinstated or reissued without the need to issue a new policy once you resume payment.
Who are covered by the ELP?
You are covered by the ELP if you are:
A government employee who entered the service after July 31, 2003, and are hence eligible for GSIS regular membership under RA 8291.
An existing regular GSIS member who will opt to convert your existing LEP into ELP.
An existing regular GSIS member whose LEP lapsed by reason of nonpayment of life insurance premiums and whose policy matured on or after August 1, 2003. You will be issued the ELP if you continue to be in active service.
What is the effectivity date of the ELP cover?
If you are a newly appointed government employee, the effectivity date of cover shall be the date of appointment.
If you are an employee whose policy matured on or after August 1, 2003, the date of cover shall be the day following the date of maturity of your LEP.
If you are an employee who opts to convert from LEP to ELP, the date of cover shall be the GSIS’ approval of the conversion.
What is the evidence of your coverage under the ELP?
As a member covered under the ELP, you shall be issued a certificate of insurance policy (CIP) with your GSIS ID number as the reference number. Only one policy certificate shall be issued during your lifetime.
Who are your beneficiaries under the ELP?
In the event of your death, the proceeds of your life insurance coverage shall be distributed in accordance with the provisions on intestate succession of the Civil Code and in the order of the following beneficiaries:
Primary beneficiaries: Legal spouse and legitimate children
In the absence of primary beneficiaries: The acknowledged natural children and surviving ascendants.
In the absence of the above relatives: The relatives within the fourth degree of consanguinity.
How is your death benefit computed under the ELP?
Your death benefit shall be computed based on your last monthly salary immediately preceding your death and to which salary the corresponding life insurance premiums were paid and remitted to the GSIS.
How much is the termination value earned under the ELP?
The termination value earned under the policy shall be equivalent to 25% for every monthly life Insurance premiums that have been paid in full, either by direct remittance or through an automatic premium loan (APL). The accumulated termination value shall increase at such rates as may be computed by actuary.