Global Allianz vs Nigeria Statutory Life Cover: What EOR customers should know
From 1 January 2026, all EOR employees in Nigeria will be covered under a statutory Group Life Insurance policy with SanlamAllianz, as required under Section 4(5) of the Pension Reform Act (2014).
This statutory cover will replace any existing Global Life Insurance coverage currently offered through Allianz for employees in Nigeria.
This article explains what is changing and how the new mandatory coverage compares with the outgoing global benefit.
| Global Life with Allianz | Nigeria Statutory Life Insurance with SanlamAllianz |
|---|---|---|
Mandatory | No - optional benefit | Yes – required by law |
Coverage basis | Based on a fixed cover level selected by employer ($50k–$600k). Payout linked to annual salary (5–6× salary, capped by cover limit). | Based strictly on Annual Total Emolument (ATE). |
Life Insurance | Up to 6× annual salary, but capped by selected cover limit. | 300% of ATE (3× annual earnings) |
Accidental Death & Dismemberment (AD&D) | Included in Comprehensive option | Not included |
Permanent Disability (PD) | Included in Comprehensive option | Not included |
Critical Illness Benefit | Not included | Yes - 20% of life cover paid upfront for eligible conditions (reduces final death benefit) |
Funeral Benefit | Not included | ₦500,000 paid to family |
Employee eligibility | All EOR employees in covered countries | All employees in Nigeria from 1 Jan 2026 |
Premium cost | Based on selected cover level ($5.64–$144.43 per employee/month) | Based on employee ATE; will vary per employee |
Taxes on Premiums | No taxes | No taxes |
- Global Life Insurance with Allianz will end on 31 December 2025 for all Nigerian EOR employees.
- Statutory Group Life Insurance with SanlamAllianz will automatically begin on 1 January 2026.
- This is a compliance requirement under Nigerian law - no action is required from customers.
- Premiums for the statutory coverage will appear in reconciliation invoices starting January 2026.
