Group Life Insurance in Pawtucket, RI and Providence, RI
Life insurance is designed to provide beneficiaries with a death benefit that they can use for any reason. For many families, it’s an important financial safety net after the death of a loved one.
Many employers provide group life insurance as part of their benefits package. Purchasing life insurance on their own could be expensive for employees, depending on factors such as their age, health status, location, and the amount of coverage they want. In general, group life insurance may cost a lot less, and it could be easier to get.
To get group life insurance coverage for your business, call Andrews Insurance Agency at 607-397-1999.
What Is Group Life Insurance?
Group life insurance functions much like an individual life insurance policy, but instead of qualifying on a case-by-case basis through traditional underwriting, an employer can buy life insurance “in bulk.” Not only do they get a discount on a collection of policies, but they can also offer future employees coverage as a benefit.
How Does Group Life Insurance Work?
Employers may offer group life insurance in an amount equal to each employee’s annual salary at no charge. Employees can typically choose to add coverage at the employer’s discounted rate. Some employers pay 100% of the premium on their employees’ behalf, while others choose to cover some of the premium.
For employees, group life insurance may provide an inexpensive and easy way to get the coverage they need.
Here are some advantages to employees who receive employer-sponsored group life insurance:
Lower premium rates than they may get if they purchased individual coverage
In general, group life insurance does not require a medical exam or medical records review
Convenient payroll deductions for premiums if the employee chooses to purchase additional coverage
Types of Employee-Sponsored Group Life Insurance
While many employers choose to over low-cost term policies, some may choose permanent coverage or allow employees to choose between the two types of life insurance.
Term Group Life Insurance
Many employers choose to offer employees life insurance coverage that represents a multiple of their annual salary. Coverage may end when the employee leaves the company or if they die while the policy is in force.
Employees may be able to choose to increase the face value of their policy and add coverage with an accidental death and dismemberment (AD&D) policy.
Permanent Group Life Insurance
Employers may choose to provide permanent group life insurance in addition to their sponsored term policy.
Permanent life insurance has a death benefit plus a savings component that allows the policy to build cash value over time. Depending on the type of policy, the employee may be able to borrow against the accumulated cash value or cash out the policy to receive a lump sum payment.
How to Get Group Life Insurance for Your Business
Group life insurance offers your employees essential coverage with the option of choosing additional inexpensive coverage. For employees, qualifying for group life insurance is easy, and many employers find it a valuable addition to the company’s benefits package.
To discuss your company’s group life insurance options, contact Andrews Insurance Agency in Pawtucket, RI, today.