Steps To Get A Group Life Insurance Policy

Written By: Graham McKenzie on May 12, 2010 No Comment

Group life insurance plan is decided by a manager or company with more than five or at least 10 workers. The employer bargains for lesser rates with the group policy providers. The insurer in this case, offers coverage to all the employees involved in the plan. This insurance plan can be a big advantage to your organization, incase you want retention of workers. You can do several things with a plan like this one.

Payment arrangements can be set up in several different ways. You can choose for the coverage to be paid solely by your company, or half through the company and half through the employee. Employees can choose not to be a part of the group plan if they want, but you will need at least five, and usually ten people to start a plan like this.

A group life insurance company usually comes with fairly low coverage, somewhere between 1-2 times your salaries. Employees can add their own life insurance to this plan if they think it’s not going to be enough. Every employee also has the right to change the beneficiary for their particular plan whenever they want.

Group life insurance comes with many benefits to the employees. Since it is a group plan, the insurance company does not take into effect any personal liabilities. A company instead is estimated as a whole, and the premiums are adjusted from there. No employee can be denied their coverage, so everyone will be very grateful for that. If an employee decides to leave they will be able to renew their coverage with the same company within a month of their leaving.

Setting up your group life insurance plan is easy. Shop around for the best prices and determine which company is best for you. Once you found one you will be able to set up an account with them involving everyone in your company that wants to participate. You will have to gather information regarding every employee that wants to participate. The insurance company will just want to know about the nature of your business so they can determine how risky the employees as a whole will be to cover. As you get new employees, they will have to fill out forms to become a part of the plan.

If someone leaves the company they can still keep their life insurance, but they must make it into a private plan. The employee has thirty days to change the plan. They will have to start making monthly payments themselves and the premiums are likely to be higher, but they can continue having coverage under the same company.

The group life insurance policy is a means of making your organization more advantageous. This can be taken as a fringe benefit offered to anyone who is appointed. The staff will stay for long in the company, and this will let you save time and money on recruitment and training. There are several company group life insurance policies that come along with a disability plan, which you may also club with your insurance plan.

Graham McKenzie is the content syndication coordinator at Lifeinsurance-Southafrica.co.za South Arica?s leading Life Insurance and Life Cover portal.