Life Insurance

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Employer paid group life insurance is an affordable means to provide employees with a significant added benefit.

For smaller face amounts most group policies are guaranteed issue meaning an employee cannot be turned down for coverage based on adverse medical conditions. Others group policies have higher face amounts with modified underwriting – conditional issue based on a few very broad medical questions.

Either way it is a way for employees to obtain life insurance at a minimal cost. Many plans are portable, meaning they can be converted into individually owned policies. Most companies offer employer paid life insurance in smaller incremental death benefit amounts, typically $10,000 to $50,000.

Supplemental Life
An additional benefit to employer paid life is to allow the employees to purchase additional life insurance in amounts greater then employer paid life. Typically these plans have a higher death benefit, $50,000 – $250,000 and are issued based on modified underwriting – conditional issue based on a few very broad medical questions. Most plans are portable so they can be converted to individual policy should the employee terminate their employment. Dependent life insurance can be purchased to cover the loss of a spouse or child.

Optional coverage usually purchased in conjunction with employee life:

  • Accelerated benefits provide a way to help a terminally ill employee maintain health, financial, or personal needs before death.
  • Flexible Waiver of Premium options allow coverage to continue and premiums to be waived if an employee qualifies under this provision.