Group Life Insurance

As a business, you have more insurance options than individuals, including group plans like health and life insurance. Group life insurance is a cost-effective way to enhance your employee benefits package while offering valuable peace of mind. Choosing a trusted insurance provider ensures your policy is reliable and well-managed.

What Is Group Life Insurance vs. Individual Life Insurance?

Group life insurance is a single contract that covers the entire group of employees within your organization. Group life insurance is typically a term life policy that can be an affordable option for your employees. Some group life policies can be converted if an employee separates employment. Some health insurance carriers may provide group life insurance as an added benefit or for an additional cost. Group policies tend to have a lower overall payout amount, and enrollees are unable to change the terms once the plan has been started. However, it can prove to be excellent supplemental coverage along ith other benefits.

One of the primary advantages of group life insurance is its low cost. In fact, depending on the coverage granted, the plan selected and the number of employees participating, group life insurance may even be free or mostly free for employees. While this comes with a lower death benefit should the policy actually be used, the rock bottom cost often makes up for this.

An additional benefit of group life insurance is that, because the risk is spread evenly among all members, there is no prerequisite for qualifying for the plan. Thus, those who normally would struggle to qualify for affordable life insurance can skip the problematic medical exam and qualify for a group life plan; coverage is guaranteed to all members.

Employers can offer flexible group life insurance by allowing employees to buy additional coverage, with premiums deducted from their pay. Although coverage typically ends when an employee leaves the company, many plans allow for conversion to an individual policy, providing continued protection if desired.

Employers are in charge of securing a variety of insurance policies to ensure that their business continues to function at the highest possible level for the long term. Among these protections is often disability insurance, meant to cover workers who, due to injury or illness, are not fit to work for a period of time.

While disability insurance can cover both the short and long term, offering long term disability protection benefits workers and encourages them to stay with your company by giving them peace of mind that they will have robust protections for their income in times of trouble.

What Defines “Long Term” For Disability Insurance?

Disability insurance covers a worker with a percentage of their original compensation if they are unable to work. While short term disability typically covers eligible scenarios for between three to six months, long term disability insurance will pay out for a term set by the employer; the most common durations are five years, ten years and until age 65. This gives workers greater flexibility to focus on their health rather than worrying about returning to work.

What Disabilities Are Commonly Covered?

The plan that the employer chooses will determine what coverages exist. Generally, two types of policies are available: those that pay if a worker can no longer perform their job duties, and those that pay if that worker cannot perform any job that is suitable based on the person’s training and experience.

Some of the most common scenarios that qualify for disability insurance payouts are pregnancy, broken bones and cancer treatment. Regardless of what medical condition a person faces, most plans have a waiting period of between 90 to 180 days, during which the person must remain unable to work, before disability insurance begins to pay.

Options For Long Term Disability Terms At Atlas

An employer can select a variety of terms for the disability insurance, and crafting a customized plan is vital to ensuring that the policy meets the needs of employees. A plan that includes income replacement of at least 60% is recommended so that workers can continue to pay necessary expenses.

The employer may also select the payout period; plans with a shorter payout period (such as two years) will come with generally lower premiums than those that extend for longer.

Industries Served

Here at Atlas, we understand that no two businesses are the same. Your insurance policy needs to be customized, ensuring you receive coverage while also maintaining compliance. For a breakdown of policies based on your respective industry, click the button below to learn more.

Get Your Group Life Insurance From A Reputable Insurer

When selecting the insurance agency to manage your group life benefit, be sure to choose a reputable company with years of experience. At Atlas Insurance Agency, A Marsh & McLennan Agency LLC, we are Hawaii’s leading employee benefit consulting team with 130+ years of combined experience assisting our community with their insurance needs.Reach out to learn more about group life insurance and create a plan that is perfectly suited to your business needs. Contact us online or call us to learn more about group life insurance and create a plan that is perfectly suited to your business needs.

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