Our Experts Name 9 Advantages of Group Life Insurance

There are many advantages to utilizing Group Life Insurance. If you are unsure about buying a group life insurance policy, this simplified list will share the 9 largest benefits to this kind of policy and how they should be considered before purchasing:

  1. Helps to satisfy an employer’s moral obligation to the dependents of employees.
  2. Contributes to employee morale and productivity.
  3. Provides a before-tax benefit to employees that they otherwise would have to pay for with personal after-tax dollars.
  4. Is expected in most firms as part of the employee benefit package. Its absence would put an employer at a competitive disadvantage in hiring and retaining employees.
  5. Costs less for the employee than an individual policy, even though the plan may be contributory. From the employee’s perspective, group life insurance (especially with respect to the first $50,000) is a bargain since, in most cases the employer pays all or most of the premium.
  6. Provides insurance for those who otherwise might be uninsurable and provides insurance at standard rates for those who might be insurable only at an increased premium.
  7. Through the conversion privilege, enables terminated employees to convert to individual policies without submitting evidence of insurability.
  8. Forms a base on which an employee can build a personal financial program.
  9. Allows an employer to deduct the premiums for group life insurance.
Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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