Group Life Insurance in Monrovia, MD
Employers may offer a variety of benefits to their employees, one of which is group life insurance. Companies can purchase a group life insurance policy to cover the members of their organizations. Employees can elect or wave coverage based on their individual needs. Coverage is usually available only to current employees. Once the employee leaves the organization, their coverage will end.
Is Group Life Insurance Enough?
Group life insurance is typically low cost or free for employees; however, some members may need more coverage. Employees with dependents who rely on their income may need additional coverage. It’s essential to provide your employees with as much information about your group life insurance policy to ensure they can make a fully informed decision. Some people may need only the group life insurance, others may want to invest in a private policy in addition to what your company is offering and some may wave coverage completely.
Is Group Life Insurance Mandatory?
Companies are not legally required to offer group life insurance. Many companies offer group life insurance because it is typically inexpensive and can help improve retention and recruiting efforts.
How Does Group Life Insurance Work?
Group life insurance is a single contract a business or organization purchases to cover a group of people. It is beneficial to employees because it is generally low cost, easy to sign up for and a medical exam is not usually required to be approved for coverage. Group life insurance policies are commonly for term life insurance, usually renewable each year during a company’s open enrollment window. Group life insurance may provide a death benefit to the insured’s beneficiaries if they die while employed at the company. If an employee is fired, quits or retires, the policy will no longer be valid for that individual.
To learn more about employee benefits, contact Lyceum Insurance Services. We can help customize an employee benefits package for your company.