Life insurance is an excellent tool that is gaining more and more popularity and that many more people are opting for nowadays. How could it not be, if it offers the possibility of securing your financial future or that of your loved ones?
In short, there is little to say that is not already known about life insurance. They are so commonplace that you will surely have at least heard their name. But what about group life insurance? Do you know about it?
At Lewer Canada, we are expert insurance brokers in Laval and we would like to talk about it. Didn’t know anything about it? Want to know 5 secrets of group insurance for beginners? Keep reading this article to find out!
What is group life insurance?
In order to answer the question that gives the title to this section, it is also worth asking what is life insurance. But it is simple to explain: a life insurance is an agreement made between a person (called a policyholder) and a company, by signing a contract called a policy.
The policy establishes a series of benefits and conditions that will make the life insurance effective. The insurance provides economic protection for the persons established in the policy (it may be the policyholder himself, as the insured, or one or more beneficiaries of his choice). The insured makes a series of agreed payments, called premiums.
There are different types of life insurance. Among them, we have the one that concerns us today: group life insurance. Knowing all this, you can already imagine what it is. Indeed, it is a life insurance that benefits a group of people. It is usually taken out by companies to insure all their employees.
Secrets of group insurance
Group insurance has certain secrets that you should know. It is always good to get information before buying something, and group insurance is no exception. Group life insurance has certain peculiarities that are very interesting and that you could take advantage of when you get one. We have listed them for you:
1. Price
First of all, let’s talk about the price. Group life insurance is usually cheaper than individual insurance. You don’t need to be an expert to understand this. Group insurance is a package of individual insurances for each member of a group. The price as a whole is simply cheaper, and that is always the case.
To be a little more specific, the amount of premiums payable can be up to 20% cheaper. And as if that were not enough, the larger the group, the cheaper the insurance as such.
2. No medical examination
Secondly, we have the guaranteed acceptability. This is one of the most striking features of group life insurance, as it does not require a medical examination for its policyholders. This guarantees that all people would be able to access the insurance and its benefits without any problem.
Instead, what is usually done instead of a medical examination is a brief questionnaire on the health of the applicants. However, it is always necessary for applicants to answer truthfully, to avoid problems of any kind in the future.
3. General expiration
This is another great advantage of group insurance: it establishes a general expiration date for everyone. Yes, just as you read: for everyone. And it does not take into account the age or state of health of the insured. This is very different from individual insurances, which usually have an age limit.
4. Individual and group benefits
Another characteristic of these types of insurance is that they offer both individual and group benefits. For example, policyholders can have the peace of mind of being covered for the amount contracted, in case they are declared totally or permanently disabled.
On the other hand, group insurance is usually tax deductible (although it will depend on each case). For this to be a real benefit, the insurance must cover all policyholders equally.
5. Incentive from companies to workers
If you are the owner of a company, this may be key for you. Opting for group life insurance is a way to show your employees that you care about them. Not just for them, but for their future and that of their loved ones.
Viewed either way, it’s a great incentive for your workers. This can consolidate commitment and optimize employee productivity by helping them. In one way or another, it generates a genuine sense of belonging between them and the company.
Looking for a good life insurance? We can help you!
If you have read this far, you have learned a little about how group life insurance works and its 5 secrets. As you have seen, there are many benefits that you can take advantage of, and with the same or even better guarantees that a traditional individual insurance offer. We hope we have cleared up any doubts you may have and that the information provided is useful to you.
If you are looking for a life insurance for yourself, you can contact us for advice. We will be pleased to assist you. For a more personalized attention, you can visit our physical facilities, located at 3131 Saint-Martin Blvd West, suite 410, Laval, Quebec.
You can also consult our benefits products section on our website to learn more about what we have to offer. Trust Lewer Canada, we have 60 years of experience behind us!
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