Your Employees Could Benefit from a Group Life Insurance Policy
Life insurance helps people provide for their loved ones if they unexpectedly pass away. For individuals who have jobs and earn an income that their families rely on, this is an especially important type of insurance. Businesses and other organizations can help their employees obtain coverage by offering group life insurance in benefits packages.
What is Group Life Insurance?
Group life insurance provides life insurance coverage for multiple people who are part of a defined group. In most cases, a business, government, membership organization, or similar entity is a policyholder, and its employees or members receive the life insurance coverage. As the policyholder, the business or other entity typically receives the actual policy paperwork, and covered individuals might get a certificate of insurance for their own records.
Who Pays a Group Life Policy’s Premiums?
A group life policy may be set up so that a business or its employees pay the associated premiums. In some cases, businesses provide a basic amount of coverage for employees, and employees who want more protection can choose to pay for additional coverage.
How Much Group Life Coverage Do Businesses Offer?
The amount of coverage that businesses and other entities offer varies greatly. Some only provide a nominal amount of coverage, sometimes just $1,000, while others offer coverage equal to several times an employee’s annual salary.