Group Life Insurance – Protect Your Crew
Group life insurance is an additional benefit that can be offered through your group health insurance plan. Group life insurance is an inexpensive way to fill some of your life insurance needs, but probably doesn’t meet them all. Most often it supplements an individual life insurance program.
Group life insurance policies typically offer two or three times your annual salary in coverage – some or all of it paid for by the employer or offered as supplemental, employee-paid coverage. Coverage is relatively inexpensive at younger ages, but rates increase with age.
Factors that distinguish group life insurance from individual insurance policies include:
Guaranteed Coverage Amounts
Under group life insurance programs a certain amount of coverage is often “guaranteed” – that means you won’t have to answer questions about your health or take a medical exam to qualify for the coverage. For amounts of coverage beyond the guaranteed amount, you may need to answer a few health questions and provide some details about your medical history. If the amount of coverage you’re requesting requires a medical exam, it’s typically a much simpler process than the full physical required for an individual insurance policy.
Group premium rates
Group insurance underwriters use what is known as an experience approach when assessing the risks involved with a group life insurance policy. Rather than basing rates on an individual’s lifestyle habits and health factors, they group people together and set rates based on the risk of the group as a whole.
Often employers make additional insurance protection available for certain covered events or accidents. Accidental Death and Dismemberment (AD&D) coverage generally pays for a covered accident that results in loss of life, speech, hearing or sight, or in paralysis. It can be available as a low-cost part of your company-paid basic coverage, an employee-paid coverage, or both.