Group Life Insurance is a form of life insurance that is intended for groups of people, businesses, and corporates to protect them against the risk of death. Help your employees safeguard their families and give them peace of mind by providing life protection. At INLE Risk Management we specialize in tailor-made group life solutions that will satisfy the needs of both the employer and employees.
A Group Life plan is a type of life insurance in which an entire group is covered under one policy. Typically, the policy-owner is the employer or an entity such as a union organization, as the policy covers the group members. These types of plans are often provided as part of an employee benefit package, and it is a common way for employers to recruit as well as retain employees to remain competitive. The benefit of Group Life Insurance is that the cost of coverage is through a wholesale basis, meaning the cost is far less than what you would pay individually for similar protection.
The process of qualifying for group policies is far easier than that for individual policies , and unlike individual policies, coverage is guaranteed to the entire group with usually no medical check-up required.
Corporate policies typically renew yearly, where the premium decrease or increases depending on the average age of group. For example, if all the employees were to remain, the policy premium would increase year on year, whereas if an older staff member leaves the company and is replaced with a much younger staff member, then the premium will decrease.
Group cover will remain in force until an employee is terminated or until the specific coverage has ended. In some cases the employee will have the option to convert his group cover into individual cover if he leaves his employer. However, it is not common for people to exercise this right, due to the fact that conversion (individual) premiums are typically much higher than group premiums. Only those who are uninsurable tend to exercise this right.
In the event of someone’s unfortunate demise, Group Life policies pays the benefit to the family or beneficiary.
At INLE Risk Management we can build bespoke policies that fit your business needs as well as your employees and their families.
Group Life is a typically part of an employee benefit package, as protection for your family against an untimely death. Group Life benefit packages is a common practice, as Insure.com highlights, in 2016, 46% of life insurance policies in the United States were group policies, offering USD 8.2 trillion in protection.
Group Life is an affordable means of coverage that ensures employees and their families can keep peace of mind in the event of an unfortunate death. That being said, the convenience and low costs don’t always cover the majority of peoples’ overall need for life insurance. So many people use their employer-provided Group Life policies as a supplement to separate individual life policies.
In the event of your untimely demise, the benefit will payout to your family or beneficiary, ensuring that they will not be financially burdened by the unfortunate event and the new costs and expenses. This is not to be confused with Keyman Life, where the benefit is paid to the company, to compensate the company against losses from the passing away of a senior manager or important income generating individual and to help ensure the continuity of production.
At INLE Risk Management, we will determine whether Group Life is suitable for your business and will help design the appropriate solution to cover the company and your employees’ needs.
