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Group
Coverages Life Insurance
Group
Life Insurance provides life insurance benefits for eligible employees
and are payable in the event of death at any time from any cause.
Group Life Insurance is usually offered on a guaranteed issue basis
up to a reasonable limit. Guaranteed issue means that insurers will
insure employees up to a certain amount without asking any medical
questions. Factors influencing the guaranteed issue amount include
that size of the group, age of the employees, and the benefit level
desired. Benefits in excess of the guaranteed issue amount are usually
still available but would require evidence of insurability.
Generally,
Group Life Insurance is provided on either a contributory or non-contributory
basis. A contributory plan is one that is paid partially or in full
(AKA voluntary plan) by the employee. A non-contributory plan is
paid in full by the employer. The cost for non-contributory plans
is less than contributory plans because there is usually 100% participation
when the employer is paying the premium and carriers favor that.
Employers often supply their employees with at least a modest non-contributory
life insurance plan, but, in addition, offer voluntary plans so
that their employees have the option to purchase additional coverage.
Participation
Requirements
Insurance
carriers usually require 100% participation in a non-contributory
plan and 75%
participation in a contributory plan.
If
you would like to request a Group Life Insurance quote, please click
here.
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