Group Life Insurance
Group life insurance helps to provide security for your employees’ families or loved ones by making a payment if an employee dies. Companies pay premiums to an insurance provider on behalf of their employees. If an employee dies while employed by your financial firm, the policy provides financial benefits for their beneficiaries whether the death occurred on the job or not. Beneficiaries are stipulated by employees when they sign up for group life insurance. Employees can choose who will receive their money in the event of their death. Group life insurance may be part of a larger package that includes other employee benefits.
Group life insurance is term insurance, which means it renews on a yearly basis. It is also guaranteed issue. This means that employees qualify without supplying any personal medical information. There are two kinds of group life insurance plans:
- Flat-Dollar Benefit
- Multiple of Salary Benefit
Flat-dollar benefit plans offer a predetermined flat amount for each employee. This might be $10,000 or $25,000. It depends completely on the policy. These plans are often appropriate for part-time employees.
Multiple of salary benefit plans are appropriate for salaried employees. These plans provide a multiple of the annual salary of the deceased. This is usually one to two times the annual salary. Most financial professionals have salaried employees. This makes this type of life insurance an appropriate choice.