LIFE INSURANCE AND GROUP LIFE INSURANCE
Life insurance is insurance designed to leave a designated beneficiary with financial assistance to negate financial burden associated with the death of the policy holder. As an added perk many employers, groups or associations will also offer some type of group life insurance as part of their benefits. When this benefit is offered through any of these associations or groups the cost of the policy or premium paid will encompass the entire group (whether it’s a company, union, military personnel, etc.). This will usually equate to significant savings where premiums are concerned for each individual member of the association, group or company.
For those seeking individual life insurance with concerns over the high cost of premiums due to below average health or age, a group policy may be the most affordable option. Under group policies all individuals are covered with the cost being evenly spread amongst the group. Therefore someone who is healthier and younger would pay the same amount as someone who is less healthy or older for the exact same coverage or amount of insurance. The only pitfall to the group life insurance model is that should you leave your job, group or association for any reason your group life insurance would cease. Therefore younger healthier individuals may prefer to carry an individual plan that will not be affected by their job status and may be subject to a lower premium.
For an individual purchasing life insurance there are different types of policies available offering coverage that varies based on the period of time the policy holder wishes to be insured. In addition to this, a life insurance company will quote your premium by taking into account such things as your age, gender and health condition (including weight). Term life insurance is a type of coverage where the policy holder is insured for a specific period of time that can be anywhere from weeks to years. Alternatively, whole life insurance is a type of coverage where the policy holder is insured for their entire life. In general a term life insurance policy will cost less in comparison to a whole life insurance policy. This is largely due to term life insurance policies not having investment benefits attached to them.
For an individual with a group policy the premium paid or coverage provided is not based on individual health. Since all of the things a life insurance company would scrutinize for in an individual policy such as age, gender, weight are not applicable in a group scenario this is of benefit to anyone that is older or has a history of ill health.
For both types of insurance (term life and whole life) death benefits are paid to a designated beneficiary in order to pay off debt of the deceased, offset any funeral costs and as financial comfort to the deceased’s family. Additionally for either individual or group life insurance the most important part is negating financial burden and offering financial support to family or loved ones at the event of death.
Tags: Denial Of Benefits, Denial Of Claim
