Group Life Insurance Quotes
Group Life Insurance is a form of life insurance, which is commonly found in employee benefits plans. This insurance is usually a one year renewable term of coverage. The cost of coverage is based on the average age of everyone in the group. Therefore, a group of young people would have inexpensive rates, and an older group would have more expensive rates. It is most often issued to a group of employees, but it may be issued to any group if it is purchased for a reason other than buying insurance. Some employers see this type of product as a way to retain employees by subsidizing the cost of the coverage.
What Group Life Insurance Is Not
Many people rely on this kind of insurance as their primary coverage, forgetting that Group Life insurance is a condition of employment. The coverage is generally non-transferable when you change jobs. However, in certain situations, the Carrier will allow you to continue your policy after you leave your previous employer if you agree to the policy's new pricing. If you have a change in health, you may not qualify for new coverage at your new place of employment.
Who Needs Group Life Insurance?
Group Life Insurance is usually offered to a group of employees, but it may be issued to various groups. Associations have such plans: AARP has such a plan. Most organizations look for this type of insurance to provide its members with benefits.
Things to Think About
The general cost is often lower than individual policies because administrative expenses per life are decreased. Group Life Insurance can offer an advantage to the employee when that company pays for part of the coverage.
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