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[G545]Group Whole Life Insurance

by Ivon T. Hughes, Ivo

Group life insurance is a policy that insures employees for group life insurance, disability insurance and other coverages. Many jobs offer this coverage to their employees, which helps them to receive benefits without any large cost to themselves. What exactly does this benefit bring and is worth it?

Why Do Employers Offer Group Life Insurance?

One of the reasons this policy works for your employer is because it can reduce employee sick leave by providing rapid medical attention. This ensures speedy recovery from illnesses and lets you, the employee, focus more on his or her job.

How Does Group Life Insurance Work For The Employee?

The main benefit is the money saved by not taking a private life insurance plan to cover all the benefits. The savings aspect is doubled when you receive the group life insurance plan free or at a discounted rate.

Is Group Life Insurance Permanent?

It is permanent as long as the company is in business. But if you leave, are fired or the business shuts down, you only have 30 days to convert to a whole life policy which is much more expensive. And that's another reason to have your own cheap life insurance policy.

What Health Procedures Does Group Life Insurance Cover?

Although group life insurance policies vary , there are some basic coverages they provide including:

Group Life Insurance

Group Health Insurance

Group Disability Insurance

Group Critical Illness Insurance

It is advisable to read your group life insurance policy thoroughly to understand what other coverage may be included.

What Options Do You Have To Taking Group Life Insurance?

The biggest alternative to group life insurance is to have your own life insurance policies. When you are insured through group life insurance the policy is not owned by you completely. When you change jobs you will have to requalify for your group life insurance and possibly face higher premiums. Therefore, it is a good idea to have your own term life and disability insurance policy; however since it is free or low cost, it never hurts to participate in group life insurance.

Group Life Insurance- What Do You Get?

In a lot of situations, the amount of group life insurance that you get corresponds to your salary. The percentage is usually one to two times your salary. This level of coverage is insufficient to cover a family in the event of the main breadwinner passing. The rule of thumb in the life insurance industry is that you need 70% of your net income after taxes, to recover from the loss of income. The family may even need more if there is still debt and especially if any member of the family has health issues as well.

What Happens To Your Group Life Insurance Policy If You Change Jobs?

With the change or loss of your employment, your group life insurance policy will be gone. If, in between jobs, you should develop a health issue, getting a new policy could be difficult with your new employer.

Is Group Life Insurance Best For The Long Haul?

No. In order to properly prepare your financial future, it will benefit you to have your own life insurance policy. Then the life insurance policy can be added to the coverage from your employer to give you a decent amount of coverage

When Is The best Time To Buy Life Insurance?

If you've been stalling buying your life insurance, contact an independent life insurance broker who can collect information from any number of companies. He will gather basic information from you in terms of your age, sex, health and recommend a medical so you can get a cheaper premium from a carrier. The sooner you do this the cheaper the premiums will be, for your life insurance. Overall, you can have control of your policy, which you don't have with group life insurance.

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Ivon T. Hughes has sinced written about articles on various topics from Home Improvement, Finances and Insurance. Ivon T. Hughes of The Hughes Trustco Group is the author of the Life Insurance Handbook: How To Get The Best & Cheapest Life Insurance available FREE to all new subscribers at:. Ivon T. Hughes's top article generates over 49500 views. to your Favourites.