Below is a practical, step-by-step guide you (as an employer, HR professional, or benefits buyer) can use to choose the best group life insurance for employees in Sri Lanka. It focuses on what to compare, how to evaluate proposals, and the operational details that matter day‑to‑day.

1. Define your objectives

• Purpose: provide basic death benefit, replace income, cover loans, provide terminal/critical illness benefit, or a mix.
• Target population: all employees, permanent only, or specific categories/grades.
• Budget: total premium, employer/employee split, contribution limits.
• Extras wanted: accidental death & dismemberment (AD&D), permanent & total disability (PTD), critical illness, repatriation, funeral costs, family support programs.

2. Key benefit design choices

• Sum assured per employee: flat amount, multiple of salary (e.g., 1–3× annual salary), or banded amounts by grade.
• Coverage tiers: same for all vs. graded (higher for senior staff).
• Waiting periods and age limits: maximum entry age and benefit reductions for older ages.
• Portability/conversion: can individual employees convert to individual policies on leaving? (Important for retention and fairness.)

3. Most important cover & contract features to compare

• Benefit amounts and exclusions: what events are covered/excluded (suicide, war, hazardous activities).
• AD&D and disability definitions: strict definitions can deny valid claims—check exact wording.
• Critical illness coverage: list of CI conditions covered and stage definitions.
• Premium structure: fixed for term vs. guaranteed renewal rates; indexation/inflation clauses.
• Premium payment mode and frequency: monthly vs. annually, and payroll deduction ability.
• Claims process and timelines: required documents, average settlement times, on‑site claim liaison.
• Grace periods and reinstatement terms.
• Term length and renewal terms: single-year renewable, multi-year guarantee, or long-term rate guarantees.
• Reinsurance and insurer financial strength: insurer credit rating and reinsurance support for large claims.
• Policy exclusions and limitations: pre-existing condition clauses, suicide clauses, war or hazardous occupation exclusions.
• Sub-limits and aggregate caps: any maximum total payout per event or per cohort.
• Portability upon termination or retirement and conversion rights.

4. Operational & service considerations (often decisive)

• Claims handling: dedicated claims team, local presence, bilingual staff, digital submission.
• Employee communications & enrollment support: clear policy documents, brochures, webinars.
• Enrollment ease: online enrolment, payroll integration, medical underwriting requirements (full medicals vs. short form).
• Speed of issue and on-boarding timeline.
• Past claim experience: ask for insurer claim ratios or references from other Sri Lankan employers.
• Local network: cashless arrangements (if any), relationship with hospitals for related benefits.

5. Pricing & underwriting matters

• Medical underwriting approach: guaranteed issue limits (no medicals up to X), simplified underwriting, or full medicals.
• Group size impact: larger groups often get better rates and fewer medicals.
• Experience rating: will premiums change based on your group’s actual claims experience?
• Loading factors for high‑risk occupations: check occupational classification and associated loadings.

6. Legal, tax & compliance considerations (general guidance)

• Confirm any employer/employee tax treatment (premiums, benefits) with a local tax advisor. Tax rules vary and matter for net cost.
• Ensure contract and wording comply with Sri Lankan insurance regulations—have legal counsel or benefits consultant review policy wording.
• Data privacy: ensure insurer’s handling of employee health data meets local privacy expectations.

7. How to evaluate proposals (practical scoring checklist) Create a weighted scorecard, examples of criteria and suggested weights:

• Coverage completeness (25%): death benefit, AD&D, disability, CI.
• Cost (20%): premiums and expected employer/employee cost.
• Claims & service (20%): turnaround, local claims rep, digital service.
• Contract terms (15%): portability, exclusions, renewals.
• Insurer strength & references (10%).
• Ease of enrollment & admin (10%).

Score each insurer on each criterion and rank by weighted total.

8. Procurement process (recommended steps)

• Gather data: employee census (age, gender, salary, job class, location), claims history if any.
• Issue an RFP/Tender to multiple insurers and/or brokers with the same benefit spec.
• Ask for sample policy wordings, list of exclusions, and claim SLAs.
• Request actuarial pricing illustrations for multiple scenarios (best, expected, worst).
• Check references from other Sri Lankan employers of similar size/industry.
• Negotiate: rate guarantees, a guaranteed issue band, improved exclusions, enhanced claims service.
• Pilot (optional): implement for a subset before full roll-out if concerned.

9. Employee communications & implementation

• Provide clear FAQs, benefit statements, and examples of payouts.
• Run information sessions and distribute policy summary in local languages.
• Explain nomination, beneficiary forms, and how to file a claim.
• Ensure payroll and HR systems are set up for premium collection, eligibility changes, and updates.

10. Monitoring after purchase

• Quarterly/annual reviews of claims, satisfaction, and renewals.
• Re-bid every 2–4 years or on significant premium increases.
• Maintain clear documentation of any changes and employee notices.

11. Practical tips for Sri Lanka context

• Use a reputable local broker or benefits consultant who understands Sri Lankan insurers and regulatory environment; they can help translate policy wording into practical terms.
• For small groups, expect higher rates and stricter underwriting—consider joining a multi-employer trust or association scheme if available.
• Prioritize fast, fair claims handling over small premium savings—employee trust depends on paying claims promptly.
• Insist on sample claim scenarios (e.g., payout for accidental death, terminal illness claim) to see how the policy responds.

Quick checklist to ask any insurer/broker right away

• What exactly is the death benefit formula? Any age reductions?
• Are AD&D and PTD included or optional? How are they defined?
• What are the exclusions (suicide period, hazardous activities, pre-existing)?
• Are there guaranteed issue limits and what medical evidence is required?
• What are your claim turnaround times and can you provide client references?
• Is the premium rate guaranteed for how long? Any performance-based adjustments?
• Is portability/conversion available when employees leave or retire?
• Can you provide full policy wording and sample benefit statements?

If you want, I can:

• Draft an RFP template tailored to Sri Lankan employers.
• Create a scorecard spreadsheet you can use to compare quotes.
• Help phrase specific questions to include in tender documents.

Which of those would you like me to prepare?