US dollar group life insurance is now being offered to Jamaican employees by Lloyd’s of London. The insurance company has made history by being the first and so far the only insurance company to introduce this innovative product to employees locally, providing a hedge against currency depreciation.

“Remember the devaluation of the Jamaican dollar, so most people would prefer to have their group life insurance in US dollars, and eight times your income with a maximum of US$1 million,” said Janet Lawe, insurance executive advisor at Lawe Insurance Brokers, during an interview with the Jamaica Observer.

Following the product launch event held at the AC Hotel in Kingston on Thursday, Lawe explained that the decision to introduce this hard currency life insurance was driven by local business owners’ requests for a more beneficial and cost-effective solution.

“You found that a lot of employers asked the question, ‘By the way, could we have this in US dollars versus Jamaican dollars considering that the dollar devalues so much?’and we spoke to Lloyd’s about that,” she shared.

During the event, Katie Hughes Martin, vice-president of Morgan White Group International (MWG), through which the product is being offered and which acts as a claim administrator for Lloyd’s of London, revealed that the company conducted extensive market research to craft a policy that would meet the needs of both employers and employees. This research involved analysing life insurance policies among various groups across Jamaica and comparing them to their respective rates.

“Lloyd’s has been in business for over 350 years, and they have never failed to pay an admissible claim,” Hughes Martin pointed out. “It is a guaranteed product, which means Lloyds will be around to pay the claim,” she assured.

Typically, larger companies provide group life and health insurance to their staff, with group life insurance coverage usually equivalent to three times an employee’s income. However, Lloyd’s is offering a more comprehensive package, providing up to eight times the employee’s income in group life insurance, denominated in US dollars. This means that companies will receive more extensive coverage while paying less.

“Companies will benefit from paying less for more comprehensive coverage, with Lloyd’s offering up to eight times the income in group life insurance, compared to the typical three times in Jamaica, with a maximum coverage of up to US$1 million,” Lawe explained to the
Caribbean Business Report.

The insurance policy offers a streamlined process, requiring no medical examination and covering pre-existing conditions without individual underwriting applications. Only one simple form is needed for everyone, making it a quick and easy issue for employers. Additionally, the group health insurance provides up to US$8 million in benefits per person, with no premium charge for children. Furthermore, Lloyd’s international health insurance has been enhanced to cover up to US$8 million per person per year, with children under 11 receiving free coverage. Clients can access health care worldwide, including air ambulance services. Moreover, an income replacement product is also available, offering added financial security.

“It’s not like the critical illness, where you have to have a critical illness like one of the 30 illnesses; it’s any illness,” Lawe explained to the Caribbean Business Report. “So as long as you cannot work and do the material functions of your job, then we will start paying you an income. We pay you up to US $10,000 per month.”

The income replacement product has a three-month waiting period for investigation but offers a unique return-of-premium feature. If no claims are made within 10 years, 40 per cent of all premiums paid will be refunded, followed by an additional 4 per cent annually, effectively ‘topping up’ your pension. All benefits are denominated in US dollars. To apply, businesses must have a minimum of five employees, with a mix of ages among the group, to qualify for the group’s life and health insurance.

“We have a long-term commitment to Jamaica, having invested significantly in the country. We’re here to stay, and our strong commitment to Jamaica is unwavering,” Hughes Martin assured.