Group Life Insurance and my thinking:
Getting life coverage from the workplace is obviously excellent and beneficial. It is very cheap, affordable, and relatively zero cost when compared with individual life coverage. This coverage is also hassled free and convenient. It doesn’t ask for any comparing with the competitors, doesn’t need any multiple quotes or anything else. As you are getting this insurance through your employee, so all headaches are your employer to find which insurer will be good for a group of employees working under him/her.
All the needy things relate to group insurance is the responsibility of your benefits provider. He or she will research online/offline details about the group insurer.
So, what are the amazing facts about group insurance? Why do you need this type of insurance? Does it worth your future benefits? Many questions have only one answer-yes, group life insurance is perfect for you if your employer-provided it for you.
Do you have a pre-medical history? Are you physically less healthy than other people? Are you a little bit of confusion thinking about how to get life coverage without a pre-medical check-up?
The first benefits of group life coverage are, it doesn’t ask for any medical check-up from the policyholder. Only a group of people have to participate in some questionnaires raised by the group insurer. So, isn’t it pretty to hear you don’t need any medical report? You only need a satisfactory answer to some questions! How pretty the whole matter is!
Secondly, the cost of the insurance; is very cheap, unlike other life coverage. Generally, most people often avoid life coverage for the expensive features. Positively, group life coverage is very affordable. As your benefits provider takes all the liabilities to run this insurance mostly on your behalf, you almost need to pay a meager amount to move on it. So, where you cannot get individual life coverage for you, group coverage from your workplace could be a fantastic option in that case.
How does group coverage work? We know already, if the group policyholder dies suddenly (with running the employment), the death benefits (comes from the group insurance) will automatically be handed over to the beneficiaries of that particular employee.
And if the employee resigns from that employment, the insurance from group life will be terminated over. In some cases, it will possibly convert for whole permanent coverage. The conversion from group coverage to whole permanent coverage needs a previous inclusion of this condition, some underwritings, etc. One thing to make you more info-rich is, whole permanent coverage is more expensive than group life coverage. Don’t be upset about why you have to pay more than previous.
Which one is best among group life coverage and individual life coverage? Basically, both of them have two different aspects to think about in-depth. Both the life coverage offers you a cash value and the death benefits. But group coverage is mandatory for some companies situated in the USA. Individual life coverage can provide you with unlimited death benefits depending on the installment you will pay per term.
Group coverage has lowermost death benefits, as your employer will purchase it to offer you as an essential benefit package. You can also enhance the death benefits, but doing so will push you towards a high premium rate and necessary payment.
From where can you choose this coverage? One of the silliest questions I have raised just now! Why do you think to take the extra load on yourself? Finding the best group insurer is not your responsibility. Your employer’s work will find the best insurer to enroll his/her a group of people under one group insurance. So I can give some suggestions for the employer. As they seek the best group insurance for their employee, it would be wise to research deeply before they finally fixed anyone. Lots of group insurers are available in our country. But all of them are not affordable or the right service providers for the insurance holder. If the employer can get an online quote from few group insurers, they can compare each other. And finally, you can select the most suitable one.
What factors can impact group life coverage? There are no such factors, actually. Only what you need is, passing a significant hire-after time or working time with your current employments (depends on company).
Final verdict:
Like the proverb, even a sweet thing also can make you bitter if you could not eat it properly. This proverb told you to maintain a minimum safe range for yourself. But a group life insurance is far from this proverb! Like, it could be so lower range to support your family’s financial need in the absence of you. What you can do is, hook yourself with capable life insurance coverage so that you can fill up any of your potential gaps, which do not meet only by your group coverage.
That is all for today. I have tried my best to deliver what I know about the group life coverage. If you think I have missed anything, please share it in my comment box.
Thank you.