GROUP LIFE INSURANCE
Group policies are planned to be risk-based on the group factor.
This is beneficial for higher risk people that normally would have been forced to pay a higher premium if they had applied for an individual policy.
If an individual participates in a group life insurance they cannot lose their right of coverage so far as they remain a member with the group plan.
Members too, tend to have the option to continue their coverage short of proof of insurability for a specified time after they leave the group.
If coverages are combined, the group can get rid of theadverse selection. This makes it a generally cheaper policy.
Visit Key Man Insurancefor more details. Insurance policies will not categorize by marriage status, race, national origin, ancestry, colour, creed or religious beliefs.
It is only possible if the distinction is made for thebusiness purpose or is a legal requirement.
A group life insurance policy, in its simple form, is a basic term insurance policy. This policy is normally offered as an annual renewable term insurance. This is a kind of life insurance that has a limited period of coverage. Once that time or ‘term’ is over, it is up to the policy owner to electon whether to recommence or to allow the coverage to expire. This kind of insurance policy differs with long-lasting life insurance, which is planned to offer life-long safety.
Term life insurance policies offer a specified benefit on the passing of the policy owner. This is on the condition that the death happens at a particular period of time. The returns the policy offer, however, is not beyond the death benefit. This is the amount of insurance paid for. Term life insurance can also be referred as pure life insurance. Its sole purpose is to insure individuals against death. Every premium paid is used to take care of the insurance protection costs.It generally offers for the payment of a specified sum or a compound of the employee’s yearlyincome for example, 3x or 4x annual income. Let’s look at other ways group life insurance policy can be beneficial.