Group Life Insurance
- Group Life Insurance plans are set up by an employer, union, or other group with a view to providing insurance coverage to plan members in the event of death. For employers, they are an attractive addition to benefits packages.
- The policyholder negotiates the details of the contract with the insurer.
- Participation is generally compulsory for employees or group members.
- Group members must have a relationship with the policyholder; for example, they must all be employed by the same company.
- Group Insurance premiums are generally guaranteed for a one-year period. Every year, the policyholder and insurer can negotiate changes to the plan.
A medical examination or other proof of insurance eligibility is not normally required. You normally cease to be covered when you leave the group. Employees with this form of insurance are urged to check that their plan will permit them to convert to an individual life policy once coverage ends.