Life Insurance Law 2020: Coverage and Advantages for Worker

What is Life Insurance Law?

A Life Insurance Act is life insurance that the employer must obligatorily take in favor of all of his payroll workers. It was created by DL Nº 688 to protect workers from any risk situation in the work environment such as natural, accidental death or disability. This insurance is consigned for payroll workers, employees and workers, without distinction.

Life Insurance Law 2020

On December 30, an Emergency Decree No. 044-2019 was published that states that companies established in the country must contract, in a mandatory manner, a Life Insurance Law in favor of their workers from the first day of employment and already not when they have completed four years of service work as stated before. This will guarantee the occupational health of thousands of workers in the United States.

It should be noted that the payment of the Insurance contribution is the responsibility of the Employer. You can learn more about this news in our note “Life Insurance Law: Now workers can enjoy this benefit.”


Those designated by the insured worker in his legalized Affidavit, according to the following order of priority:

  • Spouse or cohabitant recognized without marriage impediment and the descendants of the worker. 
  • Only in the absence of these, the benefit corresponds to ascendants and siblings under 18 years of age. 

In cases of total and permanent disability due to an accident, the insured capital will be paid directly to the worker or due to his or her disability to his or her spouse, a curator or a special attorney.

Who is it for?

The life insurance law is addressed to all Employers who seek to guarantee the coverage of the Social Benefits of the Life Insurance Law for their employed workers and workers, in accordance with the Law on Consolidation of Social Benefits (DL No. 688) and Law No. 29549.

Main Benefits of Life Insurance Law

  • Group policy for all workers or workers
  • Fast payment of premiums
  • Advice on entering the Policy and on updates
  • Burial expense for reimbursement
  • Tax relief for company loans
  • Others.

What does it cover and what does it not cover?

The life insurance Act, covers injuries and deaths of employees, insuring them with different premiums as the case may be.

What does Life Law insurance cover?

The coverage of this insurance is for natural death, accidental or disability. It covers injuries and deaths of employees, insuring them with different bonuses as appropriate.

Insurable Sums of Life Insurance Law

This insurance covers workers insured by the Employer, for the following risks and sums insured:

  • NATURAL DEATH (16 insurable monthly salaries): It is the death of the insured for non-accidental natural causes.
  • ACCIDENTAL DEATH (32 insurable monthly salaries): Accidental death is understood to be that produced by the unforeseen, fortuitous and/or occasional action of an external force that acts suddenly and violently on the person of THE INSURED regardless of his will and that may be determined by doctors in a certain way. 
  • TOTAL AND PERMANENT INVALIDITY BY ACCIDENT (32 insurable monthly salaries): In accordance with the provisions of article 5 of Legislative Decree No. 688, Total and Permanent Disability by Accident is considered only the following cases:
  1. Absolute and incurable state of mental alienation or breakdown that does not allow the insured to perform any work or occupation for the rest of his life.
  2. Incurable fracture of the spine that determines total and permanent disability.
  3. The total loss of vision of both eyes.
  4. The complete loss of both hands.
  5. The complete loss of both feet.
  6. The complete loss of one hand and one foot.

Advantages Offered by Life Insurance Law

For the Employer:

  • Fully comply with the provisions of DL No. 688 and Law No. 29549 regarding the labor benefits of its workers, thus avoiding fines imposed by the Ministry of Labor and Employment Promotion.
  • Management of a single group policy for all its employees or workers.
  • Fast issuance and ease in paying premiums.
  • Access to our website so that you can make the monthly declarations of your workers and immediately generate the receipts of premiums payable from the Life Insurance Law.
  • Access to our website to instantly issue the individual Life Insurance Law certificates of all insured workers who require it.
  • Advice on the entry and updating of Life Insurance contracts Law that the employer must register on the website of the Ministry of Labor and Employment Promotion in accordance with the provisions of DS No. 003-2011-TR.
  • For companies with more than 10 workers, the following additional coverages (some or all) may be granted to those required by law, at no cost, according to the definitions, conditions and sums insured established in each policy:
  • Burial expenses for reimbursement.
  • Disbursement for company loans.
  • Sudden family homelessness by accident.
  • Cancer.
  • Chronic renal insufficiency.
  • Vascular brain accident
  • Organ transplant
  • Myocardial infarction
  • Coronary artery surgery.
  • Multiple sclerosis.
  • Eat by accident.
  • Blindness by accident.
  • Burn.
  • Deafness by accident.
  • Posthumous son.
  • Repatriation of remains.
  • Transfer to the place of origin.
  • Family income by accident.
  • Inability to work.

Cargo Consolidation: Competition Increases in the Global Market

For the Worker:

  • The peace of mind of having the protection of a life insurance law, in your favor and that of your beneficiaries, that guarantees the coverage before an accident that causes the death (natural or accidental) or a total and permanent disability caused by accident.
  • Agility in the payment of compensation for death in favor of his family, by designating his beneficiaries alive, by means of a legalized Affidavit, following the order of priority established in Article 1 of DL No. 688.

Procedure, deadline, channel and documentation that must be attached to submit the request for coverage:

As provided in Articles 12 and 13 of the General Conditions of Life Insurance Act Active Workers (Appropriate to Law 29549).

For the payment of the benefits of this insurance, the following documents must be submitted:


  • Declaration of the claim filled out, according to THE COMPANY format.
  • Legalized copy of the Medical Death Certificate, filled out in its entirety.
  • Original or legalized copy of the Death Certificate or Certificate.
  • Original with a legalized signature of the Affidavit of Beneficiaries or the Testament by Public Deed, made by THE INSURED. In the absence of these documents, present the Intestate Succession, duly registered in the Public Registries (present a recent copy) and submit a letter issued by the company and addressed to THE COMPANY, in which, indicate that they do not have in their possession the Affidavit of Beneficiaries of THE INSURED.
  • Legalized copy of the identity document of the beneficiaries. In case the beneficiaries were minors, present a legalized copy of the Birth Certificate of each one.
  • Original or legalized copy of the Marriage Certificate. In the case of the de facto unions, THE COMPANY will record before the Justice of the Peace Judge the amount of the insured capital that may correspond to the cohabitant that appears in the Affidavit or Testament by Public Deed sign up.
  • Legalized copy of the worker’s Payment Ballots of the last three months prior to the date of his death.
  • In case of death due to illness (Natural Death), additionally submit the Medical Declaration sign in by the treating doctor of EL INSURURADO, according to THE COMPANY format.
  • In the case of Death by Accident, additionally, submit a legalized copy of the Police Certificate and Necropsy Certificate.

By total and permanent invalidity by accident of the insured:

  • Declaration of the claim filled out, according to THE COMPANY format.
  • Certification of Disability issued by the Ministry of Health or
  • Social Security Services.
  • Copy of the Medical Record.
  • Police Complaint or Police Crowd (if any) indicating the occurrence of the Accident.
  • Copy of the identity document of THE INSURED.
  • Legalized copy of the worker’s payslips of the last three months prior to the
  • date of the accident.