How Group Life Plans Work

How Group Life Plans Work

Group Life Plans

Life insurance benefits for employees can extend beyond the workplace. Group life plans are an option they can purchase to protect their family. An employer offering these plans shows appreciation and consideration, which can gain workers’ trust. As customers of this insurance, employees are able to choose beneficiaries and can develop long-term financial plans with them.

Insurance Benefits

Employee life insurance can help beneficiaries fund certain obligations, such as:

  • Monthly living expenses (utilities)
  • Debt payments
  • College fees
  • Mortgage/rent

It’s easy for anyone to qualify for coverage, regardless of gender, age or health conditions. Older workers may find group life insurance more affordable than standard life term plans, which increase in cost for older customers due to rising risk of death.

Employer Offerings

Employers initiate an enrollment period, allowing workers to opt into insurance and compensation benefits. Employees are not able to purchase group life coverage if they attempt to enroll outside that period. Sometimes they have the option to continue their plan if they find a different job, changing the plan to an individual term. This can lead to higher premiums, however.

Group insurance offers inclusive plans that provide a set of benefits to specific employees. Some plans also include health insurance, which is ideal for people with preexisting conditions. These plans are popular because they allow customers to apply benefits to their own personal life.