Corporate Life Insurance in Myanmar

Your Ultimate Guide to Group Life Insurance in Myanmar

Group Life Insurance in Myanmar

Group life insurance in Myanmar is a fast-growing part of employee benefits in the country. As a relatively new type of insurance in Myanmar in comparison to other countries this is now becoming an increasingly popular not just with large corporate companies but also with SME and new start up firms. 

Getting the right life insurance plan for your company in Myanmar can be a challenge. This is especially tricky in Myanmar due to the scarcity of insurers who will have traditionally been able to provide policies in the country. This however is something that is changing as more and more insurers are now looking at providing plans in Myanmar.

So what are the things your company needs to consider when looking for a company life insurance for employees in Myanmar? 

Let’s first look at, what does group life insurance in Myanmar cover? 

If an employee dies while you are a policy holder, your corporate group life insurance policy pays out a lump sum. Therefore, they can feel secure and confident that their loved ones will be in a financially secure situation in the case of their premature demise. 

Group life insurance through an employer in Myanmar covers the following benefits:  

• Free choice of beneficiary 

• Set as a multiple of employees’ annual salary 

• Lump sum payment to beneficiary 

• Terminal illness 

• Critical illness (optional benefit, also known as group life insurance rider) 

• Disability (optional benefit, also known as group life insurance rider) 

• Corporate owned life insurance with individual beneficiary in Myanmar 

The majority of corporate life insurance plans not only cover employees but also their qualified dependents.  

When the term “individual beneficiary” is stated in your group life insurance policy document, it does not only mean your dependents such as spouse or children, it can also refer to your parents, relatives, friends or other loved ones.  

What are typical group life insurance exclusions for startups and SMEs in Myanmar? 

Corporate owned life insurance exclusions in Myanmar vary from life insurer to life insurer. However, life insurance benefits will not typically be covered if one or more of the following situations takes place: 

• Death as a result of participation in war or criminal acts: active participation in war, riots, civil disturbances, terrorism, criminal acts, illegal acts or acts against any foreign hostility, whether war has been declared or not. 

• Death as a result of chemical contamination and radioactivity: chemical or biological contamination, radioactivity or any nuclear material contamination, including the combustion of nuclear fuel. 

• Death as a result of passive war risk: 

a) Being in a country, where the government has recommended their citizens to leave (this criteria will apply regardless of the insured person’s nationality) and advised against ‘all travel’ there; or 

b) Travelling to or staying, for a period of more than 28 days per stay, in a country or an area where the government advise against all but essential travel; 

The Passive War Risk exclusions apply regardless of whether the claim arises directly or indirectly as a consequence of war, riots, civil disturbances, terrorism, criminal acts, illegal acts or acts against any foreign hostility, whether war has been declared or not.  

• Accidental Death, Accidental Dismemberment, Permanent, Short or Long term Disability benefits will not be paid if the Accidental Death, Accidental Dismemberment, Permanent, Short or Long term Disability was as a result of any the exclusions listed for Life benefits or any of the following additional exclusions: 

• Substance abuse: alcohol, solvent or drug abuse. Drug abuse will include the abuse of prescribed, non-prescribed, legal or illegal drugs. 

• Flying in an aircraft: including helicopters, unless the insured person is a passenger and the pilot is legally licensed, or is a military pilot and has filed a scheduled flight plan when required by local regulations. 

When does group life insurance end for an employee in Myanmar and does group life insurance end at retirement for employees in Myanmar?  

The time when corporate life insurance will stop paying benefits for employees in Myanmar can be different with each group life insurance provider. However, the typical age of the insured person when group life insurance coverage for life, accidental death and accidental dismemberment ends is 70. As long as the life coverage ceases at a lower age, it will be stated in the agreement between your company and your group life insurance company. Life coverage for permanent disability, short-term disability and long-term disability terminates when the insured employee becomes 65 years old. As long as the corporate life coverage ceases at a lower age, it will be stated in the agreement between your company and your corporate life insurer. 

Does group life insurance in Myanmar have cash value? 

Group life insurance in Myanmar as well as any other countries never has any cash value. These type of plans are typically for individual life insurance plans and not something that is available on group schemes.

Are corporate owned life insurance premiums deductible in Myanmar? 

No, they are not. There are no deductibles available with corporate owned life insurance premiums in Myanmar. 

Can you cancel group life insurance at any time in Myanmar? 

Typically, within thirty (30) days of the Start Date of the Policy, as a policyholder, you have the right to notify your group insurance company of a change of mind and cancel the policy with a refund of premiums paid. The amount of time can vary from life insurer to life insurer so make sure you double-check it with your group life insurance provider carefully. If such a request to cancel the group life insurance policy is received by the group insurance company within this cooling off period, all premiums received will be returned to the premium payer, net of any medical examination expenses incurred by the company in assessing the health of the policyholder. 

What are corporate owned life insurance pros and cons for startups and small to mid-sized companies (SMEs) in Myanmar? 

On the whole, like other types of insurance, there are both group life insurance advantages and disadvantages. On the one hand, for your employees, corporate life insurance plans are a great and inexpensive avenue to provide financial peace of mind for their loved ones. On the other hand, once they lose their job or switch to another job that does not provide corporate life insurance policies on its employees, your employees might risk losing their life insurance coverage for their loved ones.  

Our Advice 

As an owner of a start-up or a SME in Myanmar, you are advised to provide as much information as you can about your employees’ unique requirements (also known as a census) so that you get a tailor-made, accurate life insurance quote. The question that you might now have in mind is “Is group life insurance worth it?”. The answer is that there are many types of group life insurance plans available with many options but to get the best return on investment for your organization, consider offering a plan that provides comprehensive levels of benefits. 

Global life insurance companies typically update their medical insurance policies on every six months or every year. These updates occasionally mean adding new employee benefits or removing existing ones. Therefore, regularly check to see how it has effects on your company because it means that your company may need to change to another group medical insurance policy that better suits your organization over time.