Life insurance has helped numerous people run their households after the passing of a family member, usually the bread winner of the family. Life insurance plans offer comfort to the policy holder when he is alive, and offer support to the family when he has passed away. This type of insurance is available in two forms that are group insurance and individual insurance. Group insurance is offered by employers where as individual insurance can be purchased online
What is Group Life Insurance?
A group life insurance policy is especially designed to suit the needs of a group. Standard life insurance policies on the other hand, are designed to meet the needs of a single person that is the policy holder. Group life insurance plans are generally used by companies that want to offer life insurance to their employees. Members of a group insurance plan can select beneficiaries while opting for the policy; however a limit may be set on the number of beneficiaries allowed per member.
Who Pays for The Selected Group Life Insurance Policy?
Usually the employer will be paying for the group life insurance policy and then an amount will be deducted from your salary every month. Alternately the cost of the policy may be included in your package in the cost to company price. Some companies may offer group insurance as an employee benefit, where in you do not have to pay premiums since your employer will absorb all the costs. In any of the mentioned situations, group insurance costs a fraction of individual insurance and also offers additional benefits compared to individual insurance plans.
Why Choose Group Life Insurance?
The main benefit you can enjoy by opting for group insurance is a low cost insurance plan that offers maximum benefits. Another important benefit you will be able to enjoy is reduced paperwork since your employer will be handling a large chunk of the paperwork. Group life insurance plans are easier to get than individual life insurance plans especially if you work with a company that offers this option. Filing a group insurance claim is a hassle free process and in most cases does not involve a pile of paperwork.
What Happens When You Resign from a Company That Offers Group Insurance?
When you resign from a company where you have opted to opt for a group life insurance policy, you will be given an option to either surrender the policy or convert the current group policy into an individual policy. You may be given a few days or weeks to decide what has to be done regarding the insurance plan. Certain perks that are offered to employees may be discontinued and you will have to pay the premiums for the converted policy by yourself.