Group Life Insurance – An Overview
A group life insurance is basically an insurance policy that is designed for a specific group of people, as opposed to a standard life insurance which typically covers a single individual only. Group life insurance policies are typically used by companies for their employees or by organisations for their members. Should the member or employee choose to leave the group, he or she has the option of converting his part of the group life insurance into an individual insurance policy.
Difference Between Group and Individual Life Insurance
You probably wish to know how a group life insurance policy differs from an individual policy. One of the most significant differences of group life insurance from an individual policy is that unlike the latter, group insurance does not take into account the risks associated with single individuals. For instance, it won’t matter that one member of the group is an avid outdoor enthusiasts who often performs risky activities like mountain climbing or sky diving. Instead, a group life insurance recognises the risk that is collectively associated with the group.
Who Pays For A Group Life Insurance Policy?
The payment terms for a group life insurance policy will depend on your company or organisation. Some companies pay the entire premium amount of their employees’ group insurance. In these cases, the insurance becomes a type of employee benefit. This actually benefits the company or organisation as well, since paying for a group life insurance costs considerably less than paying for policies of individual employees or members. There are also cases wherein employees or members are responsible for partially paying the insurance premiums. Even then, the policy is still much cheaper than a regular individual insurance policy.
Benefits of Group Life Insurance
A group life insurance can certainly offer several benefits for the individuals under its coverage. First of all, it is much quicker and easier to apply for a group life insurance since your company or organisation will be handling much of the paperwork. A group life insurance policy is also ideal if you have a pre-existing medical condition. Since you will not go through an individual underwriting, you will still be eligible for coverage.
Obtaining a reliable life insurance policy is certainly an important priority for any adult. To learn more about life insurance companies, feel free to browse this site. You may also check out the business listings located in the home page to get in touch with several life insurance companies around the country.
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