What does a group life insurance mean? My boyfriend just recently landed a job and he told me that one of reasons why he accepted that job is because of the group life insurance benefits it has. Can someone help me with this?
Denise
Houston, TX
Sure Denise!
Group life insurance policy is one type of a life insurance wherein a single bond or contract covers the whole group of people. This group life insurance is usually offered by an employer. The employer stands as the policyholder and his/her employees are covered by the life insurance policy the policyholder has.
This group life insurance policy is usually offered as one of the work benefits. In general, when a person looks for a job he/she considers the benefits being offered by the company. Group life insurance is usually less expensive as compared to an individual life insurance policy. The reason for this is because the life insurance rate is subsidized by the company a person works for. In addition, for other life insurance companies that offer this policy, they don’t ask for a medical examination. So this is good for people who have health conditions or any pre-existing health conditions. This is mandatory if you are getting an individual health insurance.
So if you are looking for a job, it’s always best to ask your employer if they offer group life insurance policy. Getting this kind of coverage may help you in getting the lowest possible life insurance rate.