If you work in a high risk environment, your employer may be covering their employees with group term life indemnity. Group life insurance itself is an obvious phrase, but what is term indemnity? A term policy is one that only lasts through an amount of time determined prior to the reportage. Many insurance companies also offer extension plans for those who are covered through term policies.
The fact that the coverage ends at a specific time rather than lasting all the way until death is a benefit to some, as some insurers permit those who leave the “group” to pick up coverage immediately after leaving under their own terms.
This is a benefit since most insurers of group term life indemnity do not give medical exams and the entire underwriting process is skipped. This gives souls who could not get indemnity before due to their medical record raising the cost can be covered without any difficulties or hikes in premiums by a group policy.
Underwriting in these circumstances is simply examining the employee turnover rate of the company as well as amount of employees. This is not a rule, however, and some insurance companies may run things differently.
Anyone not sure about the ins and outs of indemnity may wonder how term coverage varies from other types. After all, there is no want to know the info unless it is an immediate necessity, correct? A term policy is different from what’s known as a “term policy,” which is the type of reportage ordinarily associated with life indemnity that lasts indefinitely until death. Term indemnity only lasts for the period of time the policy is for, which can be anywhere from 1 to 20 years.
It’s more prudent for an employer to buy group term life insurance since the premiums for term are much lower than permanent and it would be a waste to buy a more expensive policy for employees who may only be at the company for a few years. A cheaper policy performs not mean the coverage is any worse than more expensive coverage. It is only directly related to the benefit cash out rate of term policies, which ranges in the 1 to 2 percent range.
Anyone receiving group term life indemnity by their employer should not be worried about the reportage. Being covered by a term policy is just as good as a permanent policy and will serve its function whenever there is indeed an accident.
For further information on life insurance policies as well as product recommendations and services, I suggest you check out: Cheap Insurance Life Policy
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