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What is Group Life Insurance?
This is a type of life insurance in which one contract covers an entire group of people. Typically, the policyowner is an employer and the policy covers the employees or members of the organization. Group life insurance is often provided as part of a larger benefits package available to employees. In most cases, the cost of group coverage is considerably cheaper than what the employees would pay if they sought the same coverage on their own. So, it is usually smart for employees to enroll in these group benefits, especially if they have no other form of life insurance.
As the policyowner, the employer retains the master insurance policy and any person covered generally receives a certificate as proof of insurance. As with other types of life insurance, group life insurance allows each employee to choose their beneficiary. Term insurance is the most common form of group life insurance. Group term is usually provided in the form of yearly renewable term insurance. When group term insurance is provided through an employer, the employer usually pays for most, or all, of the premiums. The death benefit typically equates to around two times the employees yearly salary.
Group term coverage remains in force until an employee is terminated or until the specific term of the coverage concludes. If they leave they employer, employees may be given the option of converting their group coverage to an individual policy. However, due to the high cost of conversion premiums, this option is usually only taken by those who are otherwise uninsurable.
Selecting the right form of life insurance for your company and its employees begins with expert consultation. Our insurance consultants will review your company's needs, explain the options, and build a policy designed just for your business. Plus, our relationships with the top carriers means that you will get the best coverage at an excellent price. We look forward to serving you!