Group Life Insurance is not so complicated if you are familiar with the following FAQs.
What Is Group Life Insurance ?
Group life insurance is a legal contract between a group of policy holders and the insurance company in which the insurance company pays a certain amount of money in case the policy holders die. A group life insurance policy is purchased by the employees’ company as a measure of good human resources practice. When you join a company always find out if they offer group life insurance as an employee benefit.
What Is Group Term Insurance ?
Group term insurance is a kind of insurance policy in which a sum of money is paid out to the policy holder should they die during the time period of the life insurance policy. The money is given to the dependents of the policy holder.
What Is Group Life Assurance ?
Group life assurance is a kind of insurance policy in which an amount of money is paid out to the dependents of the policy holder should they expire during the time period of policy. If the policy holder lives on, the insurance money will be given to the policy holder. The amount of money for group life assurance policy is substantially more than group term insurance policy.
Which Type Of group Life Insurance Policy Do I Need To Buy For My Employees ?
It depends on how much your company can afford to invest. You can check the market and see what type of group life insurance your competitors have. You can also discuss with fellow company executives the type of group life insurance policy they have in place for their employees.
Can An Employee Read The Fine Print Details Of The Life Insurance Policy ?
It is every employee’s right to read the fine details of the group life insurance policy. Since a life insurance policy is a legal document, you should know what the terms and conditions of the policy are. You should also have a policy handbook to get all the details about the life insurance policy. If you have any queries or need explanations, you should direct them to your human resource manager.
Where Can Companies Purchase Quality Group Life Insurance ?
There is a wide choice of group life insurance available. Companies can buy group life insurance policies from the internet, independent brokers, high street lenders or life insurers.
What Are The Pointers HR Managers Should Keep In Mind When Shopping For Group Life Insurance ?
Since it is primarily an HR manager’s responsibility to shop for life insurance policies, there are certain things that should be kept in mind :
- Look around for as many insurance providers as possible, independent or otherwise.
- Get several quotes.
- Find out the reputation of the insurance providers.
- Short-list 6-7 insurers.
- Check the discount deals.