Group Life Insurance
A group life insurance policy refers to the life insurance coverage provided to a group of people, usually employees working in an organization. Typically, the policy owner is an employer or an entity such as a labour organization, and the policy covers the employees or members of the group.
With group life insurance, the employer or organization purchasing the policy for its staff or members retains the master contract. Employees who elect coverage through the group policy usually receive a certificate of coverage, which is needed to provide to a subsequent insurance company in the event that an individual leaves the company or organization and terminates their coverage. This certificate would contain
- the schedule of benefits
- premium charged and
- terms and conditions of the cover
By providing such policy, the employer ensures that the employees feel secure and have financial stability even if an unfortunate event happens. In the event of the insured’s sudden demise, an amount is paid to the nominee of the employee; thereby making financially secure.
