Group Life Insurance
Group life insurance is a type of life insurance in which a single contract covers an entire group of people. The typical policy owner is an employer or an entity such as a labor union. In most cases, the cost for coverage is far less than what employees would pay for individual coverage.
Term insurance is the most common form of group life insurance. The amount of your coverage is typically a multiple of your salary. Group term insurance remains in force until your employment is terminated or until the specific term of coverage ends. However, many policies afford you the option of converting your group coverage to an individual policy when you leave your job. Many times the cost is higher than premiums available for an individual policy. So if you are in good health, you will want to compare rates before doing a conversion.
Advantages of group life insurance:
Low cost for coverage
Employers normally pay a portion or all of the premium
Easy to qualify for as there is normally no pre-existing conditions limitation
Inexpensive way to supplement other life insurance coverage
At Northern Financial Management, we are an independent agency which means that we have access to dozens of companies. This ensures that we can design the best plan for your company’s needs