Many businesses choose to offer life insurance as part of their employee benefits package. If you are looking at adding this type of coverage, or you are trying to select the right option from among an employer’s offerings, use this guide to group life insurance to better navigate the process.
Most Group Life Insurance Has Term Policies
Employer-provided life insurance plans tend to be term policies. These provide coverage for a set length of time, which is usually dependent on continued employment with the company. Benefit amounts are commonly tied to each employee’s salary.
Accidental Death and Dismemberment May Be Included
In some situations, employers may provide AD&D coverage. This is a limited form of insurance that pays a benefit amount in the case of accidental death or injury. It can be an attractive choice in many cases. It is generally more affordable than a standard group term policy and also provides coverage for non-fatal injuries.
You Can Usually Purchase Additional Coverage
Voluntary additional coverage is often available. This lets you add to the policy benefits at affordable group rates. Most experts recommend that you have insurance worth ten years of your current income. Voluntary coverage can be an affordable way to fill any gaps left by your employer-sponsored coverage.
While there will be differences in group life insurance coverage offered at various companies, there are also many similarities. Most are term policies, and additional coverage may be available in the form of AD&D or voluntary supplemental insurance.