Date Posted: January 6, 2016
State pension fund Government Service Insurance System (GSIS) is encouraging its 382, 405 active members who are still holders of life endowment policy (LEP) to convert their GSIS insurance plan into enhanced life policy (ELP).
ELP provides higher insurance benefit to legal heirs of deceased members, which is equivalent to 1.5 of the annual salary of the member. Launched in 2003, it seeks to boost financial support to members’dependents in times of contingencies.
Aside from higher insurance benefit, the policy loan amount is also higher for ELP holders. Members may borrow up to 70 percent of their policy’s termination value at 8 percent per annum compounded monthly. Qualified ELP holders are likewise entitled to receive annual dividends and termination value upon separation or retirement from service.
As a social security institution implementing Republic Act 8291 (GSIS Act of 1997), GSIS provides compulsory life insurance coverage to its members against contingencies, such as separation, retirement, disability, unemployment, and death.
In 2003, GSIS started issuing ELP automatically to members whose LEP matured on or after July 31, 2003; those who entered the service on or after August 1, 2003; and those who opted to convert their policy to ELP.
Prior to August 1, 2003, LEP is the compulsory insurance cover GSIS administers for its members.
Members who are interested to convert their insurance policy to ELP may apply at any GSIS branch office. Further inquiries may be directed to the GSIS Contact Center at 847-4747.