Group life insurance is a common coverage offered by several employers. According to the Bureau of Labor Statistics, 60 percent of employees that work in the private sector have the opportunity to employer-provided life insurance, and 98 percent of those employees partook in their company’s health insurance plan. It is easier for an employee to qualify for a group life insurance policy than an individual life insurance plan.
Let’s take a closer look at what group life insurance is.
What Is Group Life Insurance?
As the name suggests, group life insurance is offered to a large group rather than an individual. Typically, policy owners are employers or an entity like a labor organization. This life insurance is usually provided as part of a full employee benefits package. By purchasing group life insurance coverage through an insurance company on a wholesale basis for its employees, organizations are able to secure costs for each employee that are way lower than if they were to buy an individual policy.
The people receiving group life insurance policies may not have to pay the out-of-pocket cost for the policy. If you want to take more advanced coverage in addition to your group life insurance, you may choose to have a part of your premium payment removed from your paycheck. Just as with a standard insurance plan, those insured are required to list at least one beneficiary before the insurance plan becomes effective. And you can change your beneficiary at any point during the period of the insurance coverage.
Who Can Get Group Life Insurance?
Since group life insurance is employer-provided, you need to talk to your HR department at work to see if your company offers coverage. If your company offers group life insurance, there is usually an enrollment period where you can sign up. If you opt for group life insurance through your employer, you will need to choose a coverage amount and the beneficiary for your benefit. If your employer offers a group life insurance policy, you make want to ask when exactly you can sign up and how much it costs.
Should I Get Group Life Insurance?
Since group life insurance is more affordable and easier to sign up for than individual insurance, it may be worth the price for you. Whatever you do, try not to ignore the opportunity to sign up for a life insurance plan through your company. While this is not a perfect solution for everyone, see it as an option for helping protect your loved ones. With that, you have the peace of mind that if something does happen to you, group life insurance can help your loved ones cover certain expenses.
Ready To Take The Next Step?
For more information about group life insurance, contact Secure Insurance Group today. Our insurance agents are licensed and experienced professionals who can help you determine the right coverage for you.