Group Life Insurance

Group life insurance is a type of life insurance in which a single contract covers an entire group of people.  It is often provided as part of a complete employee benefit package.

Insurance

Insurance companies require a high percentage of participation among employees in order to make the program feasible.  Insurance companies alone determine insurability, and some people, for their own health or lifestyle reasons, are deemed uninsurable.  Insurance companies base group life premiums on the overall risk of the company or group.

Policy

Policy owners may raise (usually subject to evidence of insurability) or lower their policies death benefits as they deem appropriate, with minimum difficulty.  If you receive the policy at no cost, the most common type of coverage is a full year's salary payable to your beneficiaries at your death.

Employees

Employees also find group life insurance to be very valuable.  Employees can usually be insured without medical examination as a group of people under a master policy.

Employer

Employer provided group plans are often not the best deal if you are a healthy non-smoker of 50 or more years of age.

Premiums

Depending on the change in the average age of the group, premiums may rise or fall over time as the average age increases or decreases because of turnover.  The premiums for this insurance may be paid entirely by the employer or from funds contributed to by the employee through convenient payroll deduction.

Group life insurance is one of the least expensive and among the most highly valued employee benefits.  Group life insurance is issued for varying benefit amounts but is often issued in the amount one times an employee’s salary.

To learn more about group life insurance, be sure to contact one of the local insurance agents on this page.