Employer sponsored life insurance plans add a benefit that helps protect the financial security of employees and their families. Advantages of group employer sponsored life insurance:
Less stringent underwriting standards
People who might have difficulty obtaining coverage at standard rates can be insured through group policies.
Lower rates as a group
Coverage is purchased as a whole entity under a master policy. In turn this results in attractive rates lower than individual policies.
Protection against pre-existing conditions
Coverage cannot be canceled because of deteriorating health conditions. Currently covered individuals cannot be denied coverage with renewal of master policy.
Face amount of coverage
Amount of coverage can be structured in various ways - i.e., flat amount, based upon annual salary, based upon job classification.
Can offer additional coverage on a voluntary basis
Employees can be offered an option to purchase additional coverage, at their expense, at rates lower than standard individual policies. Same protections against pre-existing conditions regarding group apply to voluntary coverage.
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