What is group term life insurance
Group term life insurance in Florida provides a specified amount of money to your beneficiary in the event that you should pass away within a stated period of time. These types of plans are generally issued as a renewable one-year policy or in five year increments and can be coupled with other life insurance policies. A term life policy supplies money that your survivors can use for funeral costs, medical and hospital bills as well as any other living expenses.
Many employers offer this type of insurance as part of the employee benefit group term life insurance. Typically, the cost of group term life insurance is less than an individual term life policy because employers can secure the policies for a discounted price from insurance carriers.
Who Can Benefit
You may want to opt into a group term life insurance policy during times in your life when you may want extra life insurance coverage. Usually, these periods occur whenever you and your family are planning heavy expenditures. Examples of these times in your life may include:
- Raising children
- Anticipating college tuition or significant mortgage payments
- Planning major house reconstruction
Some group term life insurance policies may provide guidelines as to which employees within a company can receive benefits. For example, some policies may state that employees have to be employed by their company for a certain amount of time – such as 90 days– before being eligible. Other policies may state that only full time employees that work 30 or more hours can be covered.
What are coverage options with group term life
There is no cash value as part of group term life insurance policy as it is with other life insurance plans. Coverage offered to employees may be one single amount or it could be in proportion to your income. For example, a policy may offer coverage five times your income whereas another policy may offer only one times your income. Usually, you can choose which amount of coverage you want and then purchase additional coverage as needed or allowed each year by the specific policy. As you increase the amount of coverage on your specific policy, you may need to answer medical questions. Additionally, some group term life insurance policies may cover dependents such as spouses and children.
Choosing a Plan
When you are considering a group term life insurance policy, think about your current life situation and what plans you have for the future. A policy may help guide decisions such as planning a family or building a new home. Also consider any options that you may be able to add to your employer’s existing policy, such as a return of premium.