Group Life Insurance

Group Life Insurance

Group Life Insurance

Life insurance is a key component of a comprehensive financial plan, so it’s no wonder that top employers offer group life insurance as an employee benefit. Frequently, employers opt for term life insurance, but whole life insurance benefits are also available. And some plans come with a disability clause for workers who become disabled before a certain age.

Group life plans allow the employer to buy a master policy then issue certificates of participation in the plan. Although each employee is underwritten as part of the employer’s group and no one is denied based on a medical condition, an employee typically has the right to keep their coverage and convert it to an individual policy when they leave the employer (with some restrictions).

A group term life policy is often the most affordable option for employers. It provides a large amount of insurance for a set period in a worker’s life. It usually is designed to provide benefits for dependents in the event of the insured’s premature death. A whole life, or permanent life, insurance policy is more expensive, but it lasts longer and builds cash value over the course of its existence—value that the employee can borrow against or use in other ways.

Some employers opt to offer additional protection for accidental death and dismemberment (AD&D), which can cover loss of life or any of the five senses. It can be offered in conjunction with a group life policy or as a voluntary product. Our group benefits staff at Nottingham Insurance will help you examine all your options.