Facts About Group Life Insurance in Melville And Huntington, NY

Posted by cafaroinsny on December 12th, 2022

Taking proper care of employees is a must-do for business enterprises regardless of size. Simply paying the salary is not enough, however. It is common for employees to sift their loyalties by changing jobs when possible. One of the best ways to tackle attrition and earn the loyalty and gratitude of the workforce is to offer them Group Life insurance in Melville and Huntington, NY. True, not all employees or employers are aware of this provision. It suffices to know that such insurance policies are usually considered to be a part of an employee benefits package.

This type of insurance is a single policy or contract with the life insurance carrier that is offered to a group of people simultaneously. Purchasing group insurance for employees or members through one insurance provider is beneficial financially. Companies that are eager to provide life insurance coverage for their workers find the cost of group insurance policies much lower than purchasing individual policies for each.

It is a win-win for the employees. Some of them may not have to part with any money for obtaining life coverage. A few employees may opt for having the premium amount deducted from their paychecks every month. Such employees may receive additional coverage depending on the premium amount.

Salient Points of Group Life Insurance

· The insurance policy is offered by a company or a large association to the employees or members.

· It is financially beneficial for employees as the employer usually bears the cost of premiums. Partial costs may be borne by employees who wish to obtain additional coverage.

· Almost all companies offering group insurance require the insured group to have a few years of working experience with the said company.

· The insurance company does not require the group members to undertake a medical examination to be declared eligible. There is no underwriting involved, either.

· There’s a flip side, though. The death benefits may be limited as compared to individual life insurance plans

· The beneficiaries have to be provided to the insurance company before the policy is in effect. Fortunately, the beneficiaries may be changed as required at a later date.

· Coverage for a group member remains in force as long as the concerned member is an employee. The insurance coverage ends once the member quits, retires, or is terminated.

Group Life Insurance Terms

A group policy that provides life coverage is usually a form of term life insurance. The policy can be renewed each year during the open enrolment period. The participating employees in the group are eligible to receive a certificate stating the coverage. The master contract remains with the employer or management, however.

Benefits of Group Life Insurance

· Employees get value for money

· Qualifying for insurance coverage is easy, with almost all members deemed eligible as long as the employer pays the premiums

Most employers prefer to provide various group insurance policies as part of employee benefits in White Plains and Yonkers, NY.