A type of life insurance in which a single contract covers an entire group of people is known as group life insurance. The policy usually covers the employees or members of the group, and the policy owner is usually an employer or an institution such as a labor union.
Most often the cost of group coverage is significantly cheaper than the cost of an individual insurance plan for the same level of coverage. Thus, if your company or another group offers group life insurance, you should accept it, especially if you have no other life insurance or if your own coverage is insufficient.
How It Works
The actual insurance policy, known as the master contract, is kept by the employer or other organization as the policy owner. Everyone who is insured is usually given a certificate of insurance, which acts as proof of coverage but is not the real insurance policy. Group life insurance, like other forms of life insurance, allows you to pick your beneficiary.
The most popular type of group life insurance is term insurance. And the most common kind of group term life insurance is yearly renewable term insurance. When your company provides group term insurance, the employer generally pays the majority (and in some circumstances all) of the premiums. The quantity of insurance you have is usually one or two times your annual pay.
Depending on your position in the organization, the amount of coverage you have may differ. Benefits for high-paid executives and managers may be more extensive than for lower-level or hourly employees.
Group term coverage stays in effect until your job is terminated or the coverage term expires. If you quit your job, you may be able to transfer your group coverage to individual insurance. Most consumers, however, opt not to do so since conversion rates are typically significantly higher than premiums for equivalent individual plans. This conversion option is typically used by those who are otherwise uninsurable.
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Life insurance is there to give you and your loved ones peace of mind and financial protection. And Findalowrate is here to help you find the best policy to go for, choose the right level of coverage, and establish high-standard protection catered to your needs.
