Group Life Insurance - Is It Worth It?
Group life insurance is a policy that insures employees for group life insurance, disability insurance and other coverages. Many jobs offer this coverage to their employees, which helps them to receive benefits without any large cost to themselves. What exactly does this benefit bring and is worth it? Why Do Employers Offer Group Life Insurance? One of the reasons this policy works for your employer is because it can reduce employee sick leave by providing rapid medical attention. This ensures speedy recovery from illnesses and lets you, the employee, focus more on his or her job. How Does Group Life Insurance Work For The Employee? The main benefit is the money saved by not taking a private life insurance plan to cover all the benefits. The savings aspect is doubled when you receive the group life insurance plan free or at a discounted rate.
Is Group Life Insurance Permanent? It is permanent as long as the company is in business. But if you leave, are fired or the business shuts down, you only have 30 days to convert to a whole life policy which is much more expensive. And that's another reason to have your own cheap life insurance policy. What Health Procedures Does Group Life Insurance Cover? Although group life insurance policies vary , there are some basic coverages they provide including: Group Life Insurance Group Health Insurance Group Disability Insurance Group Critical Illness Insurance It is advisable to read your group life insurance policy thoroughly to understand what other coverage may be included. What Options Do You Have To Taking Group Life Insurance? The biggest alternative to group life insurance is to have your own life insurance policies.
When you are insured through group life insurance the policy is not owned by you completely. When you change jobs you will have to requalify for your group life insurance and possibly face higher premiums. Therefore, it is a good idea to have your own term life and disability insurance policy; however since it is free or low cost, it never hurts to participate in group life insurance.