Reality Paper

Everything about group insurance plan

What is group insurance?

It is life insurance that is contracted to cover a group of people who belong to the same organization. The most common case is a contracting company that provides life insurance to all its workers. It covers natural death, accidental death, and total or permanent disability by accident of the insured.

Does your company have a group life insurance?

Whoever is the manager of a company should know the importance of offering benefits aimed at tranquility, attraction, and retention of employees. Group life insurance is a good example. Low-cost, it offers the employee a guarantee of financial protection for his family in the event of an accident or illness that results in death or disability.

Benefits like this tend to please and reassure employees, especially those who are solely responsible for supporting the family and home – hence the value of the company offering group insurance is increased as more employees are attracted to it.

Among the main advantages of offering Life Insurance to the company, here are some highlights:

– High benefit, at a low cost;

– Free choice of capital value insured for employees;

– Tranquility for the worker, as the family will not be helpless;

– Possibility of new coverage to further enhance the benefit;

– It is one more point to help retain and attract employees.

Benefits for the contracting company

The group insurance covers all workers for a lower price than paid by each member. The company can pay annually or split payments in various ways.

 Benefits for the worker

Access to other coverage.

Possibility of ensuring your family.

Protection until the contract with the company ends or the contract with the insurer ends.

Requirements to obtain group insurance

It is necessary that the group of insured persons has not been specially trained to contract this service. All persons to be insured must fill out a document called a Personal Health Declaration.

The PHD collects information from each person about their health (an accident that occurred before the contract, a pre-existing illness, and receiving medical treatment, among others).

The person must be within the maximum age to enter the insurance. This will depend on the insurance company and the policy.

What is group life insurance for?

As previously stated, group life insurance is a benefit that companies can offer to their employees to ensure their protection in the event of accidents. Also, it is a way to differentiate these companies in the market and, consequently, attract and retain talent.

Thinking about the insured, group life insurance serves as a kind of guarantee, as it ensures that, in case something happens to him, his family members will not be helpless. The coverages offered by group life insurance are:

•          Death;

•          Invalidity;

•          Serious diseases;

•          Medical, hospital and dental expenses ;

•          Funeral insurance.

Besides basic death coverage, insurance also offers additional insurance against various types of risks, such as disability, serious illnesses, medical, hospital, dental, funeral assistance, and other expenses. These protections must be purchased separately.

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