STATE pension fund Government Service Insurance System (GSIS) is encouraging its 382,405 active members who are still holders of a Life Endowment Policy (LEP) to convert their GSIS insurance plans to an Enhanced Life Policy (ELP).
ELP provides a 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 contingency.
Aside from the 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 interest per annum.
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 or will now opt to convert their policy to ELP.
Prior to August 1, 2003, LEP was the compulsory insurance cover GSIS administers for its members.