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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.

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Term Insurance

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.

Employee loyalty

A group life policy provides staff with rest of mind.

They will focus on their work being aware that they are protected by an insurance plan.

Image boost

By offering financial recompenseto beneficiaries in the event of the death of an employee, the employer is indirectly boosting its own image.

The business would have a good perception of people willing to work with it. 

Cost Saving system

A group life insurance scheme is inexpensive. This means a minimal cost implication. It is unlikely that there is another cheaper way of providing for possiblestaff eventualities


Provision of life insurance plans for staffs will promote a pleasant employer/employee rapport.


Provision of life insurance plans for staffs will promote a pleasant employer/employee rapport.

An employer will also need to reflect on how hopeless hisstaffs would be if reasonable compensations are not made to the beneficiaries of a coworker that died in employment.

Several policiesoffer a wide range of coverage’s, however; the most common of these types of policies are the ones that cover 1 to 2 times the yearly salary of the employee’s.


After salary, coverages of employee benefits are the next vital tool in attracting and keeping important staffs.

Employers cannot afford not to provide staff benefit coverage. If they don’t their competitor will.



A lot of them now provide:

  • Group serious illness plan which provides employees with lump sum irrespective of ability or inability to work, if they are diagnosed with any of their listed medical conditions
  • Medical access
  • Staff support programs

Health insurance provides a way out for the employers.
In some countries, regulations are compelling employers to offer healthcare benefits to their staffs and penalize them if they fail.
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Many tend to question the advantages and disadvantages of these health care benefits.

While some employers moan on not having a choice in the matter, others embrace it with wide arms.

Providing health insurance to employees has both its advantages and disadvantages.


Low Premiums

For employee health benefits, employers can offer premiums on health insurance and thus reduce the coverage cost for them every month. For each eligible employee for health care benefits, a part of themonthly premium or the whole sum may be payable by the staff. This could, in theory, lead to free healthcare for the staff.

Less Scope for Adverse Selection

A big concern for some people today is that those that have a pre-existing health condition normally find it difficult to get coverage benefit. Even if they find those coverages, it normally turns out to be very high for them. Nevertheless, the size of employer-based health coverage can be able to make their access to health coverage much easier and very affordable for staffs. This also helps the employers to ease the burden of providing health care coverages on staffs every year on.


Absence of Choices in Policies

In an employer-based plan or group, the employer usually gets to be the one that takes all the decision. The decision includes the options that cover a majority of the staffs, the physicians the staffs can see and so on. For some employees, this means they will no longer be able to see the family doctor that has since been consulting them for years. They may also have pay out of their pocket for eyesight or dental cost if for example; they are not covered in the employer-based plan.

Employees Preference of Individual Insurance

Though employer-based group plans may be appealing, some staffs might find individual health insurance policies more suitable to their needs. Individual insurance can offer the lowest rates obtainable to those employees that have little need of coverage. Good examples are the likes of young workers and those who are usually more fitness and health-conscious. A group plan premium can seem partial to these staffs that might be on the bottom end of the wage scale in a group.