Essential Life Insurance coverage for your employees
The majority of group benefits packages include some form of group life insurance coverage. This benefit is usually provided at little or no additional cost to employees and often allows them to cover their spouses and children as well.
Group life policy usually provides basic but necessary life insurance coverage, and the coverage is lost if a member leaves the company. If that is the case, the departing employees are given the option to convert their coverage to an individual life insurance policy.
The maximum amount of the benefit is determined by the size of the group. There are two types of maximums:
- Non-evidence maximum
- Overall maximum
The non-evidence maximum is the amount of insurance the provider will cover without proof of good health. The larger the size of the group, the larger the non-evidence limit will be. If a group requires a higher limit, each eligible employee will be required to provide proof of good health. The overall maximum is the maximum amount of insurance the insurance company will cover.
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What is a Group Life Insurance policy?
Well from the word itself,
Group Life Insurance is no different from individual life policy but only designed for a group of people. Normally, the policy owner is an employer or an entity such as a labor group or organization, and the policy covers the workers or members of the group.
It is often offered as part of a complete employee benefits package for the purpose to attract highly skilled and good employees and make them stay for good to the company.
Why should I purchase Life Insurance for my employees?
There are several reasons why you should purchase life insurance for your workforce. First, offering these benefits is an effective way of showing to your people that you value their hard work, loyalty and contributions to the company. Second, it is a way to show your staff that you care about their well-being and that of their families. Finally, a group life policy is also a great way to provide your employees with access to tax-free benefits*.
*Note: Group health and dental plans are subject to taxes in Quebec only.
What are the typical Group Life Insurance benefits?
A typical Group Life policy will include the following benefits:
Accidental Death and Dismemberment Insurance
A predetermined amount that is paid out to a deceased employee’s designated beneficiary (or beneficiaries) when an accidental death occurs. This can be a defined maximum or a multiple of an employee’s annual earnings. There are also benefits paid out if an employee suffers a loss or loss of use of certain body parts. You can find a full list of what is covered inside your policy booklet.
Critical Illness Insurance
This coverage includes a defined amount that is paid to an employee who suffers any of the covered illnesses. The covered illnesses vary based on the insurance provider. The illnesses most commonly covered under this benefit include:
- Cancer
- Heart attacks
- Heart bypass surgery
- Strokes
Dependent Life Insurance
A set amount that is paid out to a deceased employee’s designated beneficiary (or beneficiaries). This can be a defined maximum or a portion of an employee’s annual earnings.
Employee Basic Life Insurance
A set amount that is paid out to a deceased employee’s designated beneficiary (or beneficiaries). This can be a defined maximum or a portion of an employee’s annual earnings.
Where can I get Group Life Insurance plans?
Like other kinds of employee benefits, This insurance plan can be obtained from most licensed insurance brokers like us. Before you make the call, however, you can also get a free quote by clicking the button above to help you learn more about the options available to you.
