Obtain Cheap Coverage through Group Life Insurance

You can get cheap life insurance policy through group life insurance. In general, this is a kind of insurance is offered in offices. As a group life insurance plan covers a lot of people, employers provide affordable rates. While this type of coverage can be attractive, keep in mind that the offered coverage is often insufficient to meet your needs and your family’s.

Typically, this cheap policy is offered by employers as they serve as policy owners while their employees are the insured. In this scenario, the risks are calculated by the insurance firm according to a group of people. The assumptions of agents would be that not everyone will pass away at the same time. The company also has the assumption that not all employers will stay at work with them until retirement age. The insurance firm will then cover the group for a short term instead of insuring each employee. These assumptions are great basis of insurance providers to provide reduced rates.

Employees who participate in a group life insurance can be offered with a group plan without having to pay anything. Obviously, this is cheap life insurance. In this case, the policy is promoted as a benefit to the company. When there is no payment asked to the employees for their plans, in general, their death benefits are equivalent to a year of their salary. There are other firms that offer more benefits to union or management employees. Whoever is insured, the coverage is cheap for group coverage for sure.

In the case where employers can contribute a certain amount to their group life insurance plan, they can expect a more substantial death benefit. This also enables the children and spouse of the employees to obtain coverage under the same plan.

A group insurance plan benefits employees as they are not required to undergo a medical test. This means that employees can be insured even if they have preexisting medical conditions.