Group Life Insurance
Group life insurance is just one of the many options when searching for life insurance coverage, but it is also one of the best choices for employees. Unlike individual term life insurance, which is purchased directly by individual policyholders, group term life insurance is purchased by corporations, organizations, and the self-employed.
These employers will then offer their employees some coverage at a subsidized price. Group life insurance policyholders are not required to pass medical exams to qualify, so pre-existing conditions are not a factor. This is very similar to group health insurance.
Pooling Risk
Since corporations buy group life insurance in substantial quantity in order to distribute it amongst many different people, they are spreading the life insurance company’s risk around, meaning that the general risk for the insurer is lowered, allowing group term life insurance policies to be much less expensive than normal individual term life insurance policies. Basically, if there is a 65 year old employee and a 25 year old employee, the risks will be balanced out, and all of the employees can enjoy the benefits of subsidized group life insurance equally, regardless of age.
Benefits of Group Life Insurance
As mentioned, group term life insurance can be cheaper than regular term life insurance, and allow for even older applicants to receive coverage. However, there are other benefits as well – the process is very simple. Most employers require the applicants to turn in one form to be included in the program.
Medical exams and disclosure of medical history are not required, which will come as a relief to many applicants, as individual term policies are very strict about medical/physical examination and full disclosure. In addition to all this, applicants who have been deemed uninsurable by other companies can easy benefit from affordable group life insurance.
Finding Group Life Insurance Coverage
Most employers and organizations offer group life insurance to their employees or members, so it would be wise to consider this when applying for a job. Group term life insurance through an employer is a great way for those applicants who might otherwise be hard-pressed for good coverage to get an affordable life insurance policy.
Check out a company’s policy on life insurance for their employees before applying, or find out if your existing job has any benefits you might be able to take advantage of.
Life Insurance Quotes
Since individual life insurance policies can sometimes be cheaper and more comprehensive than group life insurance, compare term life insurance quotes online prior to applying to be sure that you are making the right choice.
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