Most adults are recommended to carry a life insurance policy, especially those with families, debts, or significant assets. One of the most common ways to get basic coverage is through an employer. Employers purchase group life insurance policies to cover their employees as a whole. Here’s what you need to know about how this coverage works.

The Basics of Group Life Insurance

Life insurance pays a predetermined amount to a beneficiary in the event of the insured person’s death. A group policy covers multiple people. One person—usually an employer—owns the policy and notifies the insurer of each individual seeking coverage under the plan.

The covered individuals get to name their own policy beneficiaries, and coverage usually continues as long as the employee stays with the employer. Upon leaving the job, people may have the option to convert their coverage to an individual life insurance plan separate from the group policy, or they may need to seek out other coverage options.

Benefits of Group Life Insurance

For Employees

This type of policy is usually paid for entirely by the employer, so it’s a significant addition to your compensation package. The payout is usually equal to one or two years of pay, which helps any surviving family members in the wake of your death.

People with medical conditions are easier to insure as part of a group rather than as individuals. These policies may also offer them more coverage. You may also be able to get a deal on supplementary coverage if you’re on a group policy, which means you can more easily carry a large amount of life insurance. These policies are also convenient to get through an employer because you won’t have to shop and negotiate prices yourself.

For Employers

Being able to offer a policy as part of your compensation package can attract new employees, allowing you to fill your company’s ranks with talent. It can also help you retain current workers, as they will want to keep their coverage for as long as possible. The group policy is also much cheaper than securing individual policies for employees.

If you’re an employer seeking group life insurance options, turn to the team at Siemers Insurance Agency. These agents are based in Cincinnati, OH, but are also licensed in Kentucky, Indiana, Florida, North Carolina, and South Carolina. They have over 60 years of experience and are a member of the Independent Agents Association of Ohio. They’re committed to providing you with top-quality policies from major insurers. Call (513) 469-8877 or visit their website to get started with a quote.