25 Mar

Why You Should Consider Group Life Insurance

Life insurance includes many options that may sound confusing to people at first glance. Whether you decide on an individual plan or group life insurance, there are some things you should consider before deciding which plan is most suitable for you. They will vary depending on what the group or family may need. The priorities may change if it is for a group of employees, or may become more personal for a family unit.

Group life insurance is offered by an employer or large-scale entity to employees. It is usually offered as a piece of paper or a membership benefit package.

There are many types of group life insurance in San Antonio:

•    Term life includes purchasing coverage for a specific time period and an established price.

•    Whole life will cover your entire life, and works in the same way as the term life policies. The only difference is that some of the premiums are invested by the insurer.

•    Universal life policies are based on the investment of an amount that is over the agreed minimum premium. Bonds or mortgages may serve as the investment, and a special cash-value account is set up to include the investments and returns on them.

•    Variable life is similar to universal life, but the only difference is that the insured chooses the investment vehicles.

Which plan is right for me?

There are companies that will work with clients on a one-to-one basis to ensure that all your questions are answered before a policy is signed. There are fully customized life insured products that are tailored to your needs. There are dedicated life insurance professionals that deal with your unique situation on an individual basis.  You will be able to submit a request for a quote so a group life insurance employee can contact you to create a quote that will satisfy your situation—and it will be accurate.

In addition, group life insurance is effective until your employment is terminated or until the term coverage ends. You have the choice of converting your term life insurance into an individual policy if you leave your job. However, this may not necessarily be the right choice, because these conversion premiums tend to be higher than premiums for comparable policies that are meant for individuals. These types of plans are most suitable for people who are not insurable.

What does it include?

According to FinancialWeb, many group life insurance programs offer a certain amount of coverage that is usually guaranteed. This means that you won’t have to supply information about your health, or take a medical exam in order to qualify for the coverage.  However, if the amount exceeds the guaranteed amount, you may need to answer a few questions and give some information about your health.

In addition, Lifebenefits.com states that if you require a medical exam under your coverage, it is usually a much simpler process than the full physical that is required for an individual insurance policy.  If you’re using group life insurance for your family, there are many plans that include changes in the family. You will be eligible for an increase in coverage if there is an increase in family.

Furthermore, the website explains that underwriters are able to assess the risks involved with a group life insurance policy. They can group people together and set the rates based on the risk of the group as a whole.  Group life insurance is supposed to act as insurance for employees and their families.  It will provide protection for a specific period of time, and pays a benefit only if the insured dies during the covered term. It will provide a base level of protection that can be enhanced by personal savings, individual life insurance, and Social Security benefits.

Moreover, the death benefit is paid income tax-free to the beneficiary. Your individual proof of insurability is not normally considered in the underwriting. The underwriter considers the size, turnover, and financial strength of the group.  Furthermore, the group life insurance often includes a provision for a member who is leaving the group to purchase individual coverage. There are insurance companies that can help you decide which options will work the best for you. They can also explain what polices you are required by law to possess, and you can rest assured that they will protect the group as a whole.


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