When it comes to optional insurances many in Finland consider buying a life insurance, especially when starting a family. Obviously this makes sense as it protects the family in the sad case one of the parents passes away. In Finland there are insurances for every wallet, depending on what compensation amount one chooses.
What many employees do NOT know though is that their employer already pays for a life insurance! Here is everything you need to know about the group life insurance:
What is the group life insurance in Finland?
Almost every employer in Finland pays for a so-called group life insurance on behalf of its employees. In Finnish the name is ryhmähenkivakuutus.
Accordingly the insurance compensates the family after the death of a spouse or the children’s legal guardian. In order to receive the compensation the employer or one of the beneficiaries must submit a claim. We recommend to check from the current/last employer whether it makes a claim on behalf of the beneficiaries or not.
Please check the pages of the Finnish Workers’ Compensation Center for more infos on how to claim compensation.
Interestingly the insurance is valid during work and leisure time and up to three years after the last employment ended.
The employer takes care of group life insurance in Finland
Most national labour market organisations have agreed to provide employees with death cover. Consequently most employers offer this insurance and also pay the insurance premium.
Check from your HR contact whether your employer pays for group life insurance!
Who is beneficiary of the group life insurance in Finland?
The death benefit is paid to the employee’s beneficiaries after his/her death. The beneficiaries are the deceased person’s spouse and children under 22 years of age. If the deceased person does not have beneficiaries indicated in the insurance terms and conditions, there is no death benefit payment.
What compensations can I expect?
The compensation is paid as a lump sum, and the compensation amounts are determined annually by the Ministry of Social Affairs and Health. The amount payable depends on the age of the employee and the number of dependent children. If the cause of death was an accident, the compensation usually increases by 50%.
You will agree that the amounts are by no means huge, nevertheless better than nothing. Remember that the group life insurance doesn’t cost you anything.
If the insured dies under the age of 50 years the spouse’s basic compensation is 16 720 €. For every child under 22 years of age the compensation rises by 7 540 €. If the cause of death was an accident 50 % of the sum total of the spouse’s benefit and child’s benefit is added. You can find all compensations here.
Michael wants to encourage people to reflect about their financial situation and help them to define and reach personal financial targets.
- Quick guide to your 2023 tax return in Finland - April 28, 2024
- Save Taxes in Finland with this Year End Checklist - November 18, 2023
- How to get the right home loan in Finland? - August 22, 2023