Death benefit coverage is a type of life insurance that your employer can include as an additional cover in your group insurance plan. In your pension plan regulations, your employer will then specify the pre-set amount that will be paid out to your beneficiaries if you should pass away before you retire. 

To fund this death benefit coverage, employer contributions will be made towards your death benefit proceeds (Death Benefit premium) on top of the usual group insurance contributions (Retirement premium).

In some cases, your employer will allow you to set your death benefit coverage level yourself. If so, you can choose between building a bigger nest egg for yourself (Retirement benefit) or providing your beneficiaries with a bigger windfall in the event of your death (Death benefit). 

Not sure whether your group insurance plan includes death benefit coverage or not? To find out, log in to the MyAG Employee Benefits app.

Who collects my group insurance proceeds if I pass away before I retire?
If your group insurance plan also comes with death benefit coverage, your beneficiaries will be entitled to collect the sum set aside as a death benefit. Keep in mind that statutory requirements and tax obligations will also apply. To help you unravel the complexities, we've consolidated all the information you need about paying out your proceeds to your beneficiaries.