Group Life Insurance
Group Life Insurance is an insurance coverage provided to a group of people, most often employees of the same company.
What is Group Life Insurance Plan ?
Group life insurance is offered by an employer or other large-scale entity, such an association or labor organization, to its workers or members. This life insurance, which typically is inexpensive or even free, and has relatively low coverage amount, is typically offered as a piece of a larger employer or membership benefit package.
Group Life Insurance policies can also provide various benefits. US#1 Insurance can help you assess your options.
Benefits of Group Life Insurance
- By purchasing group life insurance policy coverage through an insurance provider on a wholesale basis for its members, companies are able to secure costs for each individual employee that are much lower than if they were to purchase an individual policy.
- Those receiving group life insurance coverage may not have to pay anything out of pocket for policy benefits, or they may elect to have their portion of the premium payment deducted from their paycheck.
- With group life insurance, the employer or organization purchasing the policy for its staff or members retains the master contract.
- Employees who elect coverage through the group policy usually receive a certificate of coverage which will be necessary to provide to a subsequent insurance company in the event that the individual leaves the company or organization and terminates their coverage.
- The typical group policy is for term life insurance, often renewable each year with a company’s open enrollment process.
- Group term life insurance, with monthly premiums paid either entirely or in large part by the employer, usually offers lower coverage levels than most experts recommend – usually only one or two times an employee’s yearly salary.