Understanding Group Life Insurance
What is group term life insurance?
Group life insurance is term life insurance, which is re-priced annually based on the average age of your staff. The benefit is set up either as a flat amount or a multiple of annual salary.
Not only will our specialty group life insurance brokers help you design your plan, but they’ll also conduct renewals and negotiations on behalf of your business.
What is the benefit amount for a group life insurance policy?
Your organization can define the benefit amount based on your budget as well as the needs of your employees. Typically, however, the benefit is equal to one to two times an employee’s salary, up to a defined maximum amount.
Our knowledgeable group life insurance brokers can provide guidance on defining the death benefit for your organization’s policy.
Who qualifies for group life insurance?
Group life insurance providers typically only offer coverage for individuals who are under the age of 70.
Beyond that, your organization will get to determine who is eligible for your group life insurance policy. For example, you may want to offer the coverage only to full-time staff who have completed their probationary period.
Also keep in mind that coverage is tied to your staff’s employment. This means they will no longer be covered under your group life insurance policy if they leave your organization or are terminated.
One of our expert group life insurance brokers can help you determine employee eligibility based on your budget and staffing levels.