As companies continue to compete to attract the best talent and rise to the top of their industry, many companies are starting to offer group life insurance as part of a benefit package. Usually this is an optional cover and many times it is not offered to employees until they have been with the company for a certain period of time. If you or someone you know has the opportunity to buy group life insurance, hopefully this information will help.
Typically, group life insurance offers employees a variety of options including group health, group life and long or short term disability. For the most part, these will be offered as a supplement to a current health insurance plan.
The advantage of a group life insurance is the low premium rates that an employee receives because the insurance company looks at the group's total risk, provided that some individuals may not remain in the company through retirement, while others may opt out of the policy.
Keep in mind that although a group life insurance policy may be an extra life insurance policy, it is usually not sufficient insurance to prevent an employee from needing their own individual life insurance policy. This is because most group policies set a ceiling of somewhere between $ 10,000 and a year's salary.
Before logging on to group life insurance, you must still be sure of the type of insurance this is. In most cases, companies offer lifelong insurance to their employees, with the insurance only good while the employee works for the company. If it is part of a benefit package, you may be able to roll it into your own account after termination, but this is not always the case . Remember that the company actually owns the policy, so you will need to deal with this factor as much as for a 401 (k) or IRA plan. Employees can benefit from possible lower insurance rates for a group and as a competitive advantage for hiring talent. If you are considering including life insurance in your employee's benefit package, you will have several coverage issues to consider, including who to cover and what type and amount of coverage you can offer. Your next step should be to reach CoverLink Insurance so that we can help you with all questions, help you find a suitable supplier and ensure that your plan is administered correctly.