There are plenty of other great reasons to offer group life insurance to your employees, and before you pick the right plan, be sure to understand the answers to these frequently asked questions.
How does group life insurance work?
Life insurance is a lump-sum payment made to your beneficiaries in the event of your death, and it’s also known as a death benefit. When a group, in most cases a company, decides to offer its members (employees) group life insurance, they are essentially buying it in bulk and are able to get a preferred rate.
Often, this means the group can offer coverage to its members at little or no cost to the employees. Group life insurance rates are determined by looking at the overall risk factors, age, and health of the entire group.
Group life insurance is often only applicable while you work for the employer or are part of the group, and it offers smaller coverage amounts than individual life insurance. For this reason, group life insurance is considered a supplement, not a replacement for individual life insurance.
What are the benefits of group life insurance?
- Low cost
- Easy to qualify
While group life insurance coverage may not be as extensive as individual life insurance policies, the minimal or non-existent cost to group members means it’s a smart option. If group members don’t have their own individual policies, they will still have the peace of mind knowing they have basic coverage thanks to their group life insurance plan.
Another benefit of group life insurance is that it’s easy to qualify. Unlike individual life insurance plans which often entail medical exams or questions before you are eligible, all group members are automatically included in group plans.
Can I purchase group life insurance if I’m self-employed in Salt Lake City?
To qualify for group life insurance in Utah, your group must include at least two members. So, if you’re a team of one, you’ll have to purchase individual life insurance rather than group life insurance.
Call the agents at Salt Lake City Insurance today to learn more about our affordable group life insurance plans.