Group Life Insurance

Many companies offer group life insurance as one of the benefits of working for them.  This is a policy which will cover a number of people instead of being tailored to one individual.  Group life insurance will usually be adapted to the specific company instead and will meet eventualities that may occur while working for that particular company.  One of the many inclusions that some companies decide to pay for cover is dental surgery, accidents and some will even cover you for unemployment.  It is considered to be a great perk when working for a company.

The group plan is usually made up of one main contract between the life insurance company and the particular company.  Each employee will have a certificate which states that they are a part of that group plan and they will need that certificate if they want to claim from the plan.  The employee will simply name who they want to be able to claim in the event of their death; the employee’s beneficiary will then claim from the company using the certificate.

If however, you leave the company or are made redundant for whatever reason, you may have the option of continuing in the plan by contributing yourself.  As long as you continue with the monthly or weekly payments, you will still be able to carry on benefitting from the plan.  But you should be prepared for your payments to increase as you will no longer be part of a group life insurance and will be billed as an individual.

Many group life insurance policies are also more beneficial to an employee as a lot of them are linked to your salary and will pay out a certain amount based on the amount of your salary.  The advantage of this is that the more you earn the more your dependants are likely to gain if you were to die.

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