What is Group Term Life Insurance?

Group term life insurance tends to be a much more affordable option than individual term life insurance rates tend to be, simply because the costs to the insurer are much lower in general. There is generally much less paperwork for them to handle, and by signing up a group for group term life insurance, they are guaranteed multiple accounts in a single sale. This is truly the greatest incentive for offering this type of policy.

What is Group Term Life Insurance?

Group term life insurance policies offer life insurance coverage to all of the employees that work for a particular organization or to any other group of people that apply for it all together. Group term life insurance covers unexpected employee deaths and group term life insurance benefits are typically calculated based on the lost income wages for said employee. Offering group term life insurance for a company and all of its employees tends to be significantly more affordable than offering an individual life insurance policy for each and every employee under the company’s roof. Considering how extremely important it is for employees to be offered the most attractive and competitive benefits in order to bring in the best workers, group term life insurance truly does make an excellent option to benefit both the employees and the employer alike.

Should an employee ever decide to want to leave the company, many group term life insurance plans can actually also be converted directly into individual policies, This creates an attractive option for flexibility, which is a large part of why group term life insurance is such a popular option. Insurance premiums are actually even tax deductible, which should make the prospect of group term life insurance even more attractive to most employers who are looking for a way to protect their employees, and attract new and better employees by offering great incentives.

Most group term life insurance policies do not tend to require that each and every employee covered take an individual physical examination. This means that even if an employee is unable to obtain their own individual competitive life insurance policy, they can probably still seek and obtain coverage under a group term life insurance plan with their employer. This alone is a great way to attract employees to your own company over competing companies because many companies do not offer group term life insurance and require that their employees pay their own individual premiums instead.

Group term life insurance is an excellent benefit you should strive to provide for your employees. Group term life insurance can be much more inexpensive when compared to other similar individual life insurance policies. Because group term life insurance is no medical exam term life insurance and because it offers full payouts to all members, it can be an extremely effective choice to insure a group of individuals.

So regardless of whether you are an employer trying to find the best insurance option for your workers or a group trying to find the best way to ensure everyone, group term life insurance is definitely well worth exploring as a viable option to protect your families and loved ones.