Group Life Insurance Fundamentals

Group life insurance is a type of life insurance in which a single contract covers an entire group of people. Typically, the policy owner is an employer or labor union, and the policy covers the employees or members of the group. It is typically provided as a part of a complete employee benefit package. In most cases, the cost of group coverage is far less than what the employees or members would pay for a similar amount of individual protection. As with other insurance policies, those insured have an option to choose a beneficiary.

Term insurance is the most common form of group life insurance. Most of the premium cost associated with this benefit is typically paid for by the employer. The amount of an employee’s level of coverage is usually two to three times their annual salary. Coverage remains in force until a member’s employment is terminated or until the specific term of coverage ends.

Our agency can meet all of the benefit oriented insurance needs of your business, including group insurance products. Group benefits are a cost effective tool to attract and retain key employees. They include life, health, long-term care insurance and retirement plans (401k, etc.).