Group Life Insurance- this type of insurance constitutes almost half of all life insurance in force in the United States as of the end of 2005.[Life Insurers Fact Book 2006 The American Council of Life Insurers, Chapter 7 Life Insurance page 63.]Because of its frequent availability amongst employers, simplified underwriting requirements and affordability, group coverage is often the primary source for individuals' life insurance arrangements.

  • Eligibility: insurable groups include individual employers, multiple-employer groups, labor unions, fraternal associations, trade associations and creditor/debtor groups. While NAIC guidelines do not require a minimum group size as a condition for eligibility, most states require a minimum number of eligible participants for an employer to be able to offer a group plan. Full time and active employment typically constitutes eligibility. Additionally, some employers may require the satisfaction of a probationary period of new employees for a period of up to six months before they may enroll in the plan. The enrollment period of typically thirty one days follows, allowing the newly eligible employee to sign up for group coverage. Evidence of insurability may be required if the employee declines enrollment during the initial enrollment period and subsequently decides to join the plan. Once a policy is issued, insurers usually require a certain rate of participation in order for the group to keep coverage in force.


Group Life Insurance: Common features

Related Articles
  1. Financial Advisor

    Group Term Life Insurance: What You Need to Know

    Is group term life insurance really a good deal? What you need to know about employer-sponsored group term life insurance coverage.
  2. Financial Advisor

    Is Life Insurance From Your Employer Enough?

    Covering the needs of the ones you would leave behind is not easy. But efforts to secure a life insurance policy outside of work should pay off.
  3. Financial Advisor

    Buying a Life Insurance Policy? Read This First

    Knowing who needs life insurance, how it works and the different types of insurance can help consumers make informed decisions about this product.
  4. Insurance

    Term Life Insurance: Everything You Need to Know

    Term life insurance is an affordable way to financially protect your loved ones after your death. Here's what you need to know before purchasing a policy.
  5. Insurance

    Life Insurance

    Life insurance is an important component of basic financial planning. Find out how life insurance works and how insurance companies are able to profit through providing financial security to ...
  6. Insurance

    When Should You Get Supplemental Life Insurance?

    For individuals with larger families and responsibilities, supplemental life insurance may bridge the shortfall in coverage from term or whole-life policies.
  7. Financial Advisor

    Getting Life Insurance in Your 20s Pays Off

    Find out how Americans in their 20s can benefit from a well-thought-out life insurance policy, especially if they are able to build cash value for retirement.
  8. Insurance

    World's Top 10 Insurance Companies

    These are the 10 largest insurance companies in the world.
  9. Insurance

    Young & Healthy? Don’t Buy Life Insurance from Your Employer

    Here's why, plus a few exceptions to consider.
  10. Financial Advisor

    Who Should Buy a Guaranteed Issue Life Insurance Policy?

    Guaranteed issue life insurance policies have added costs and reduced benefits that make them suitable for only a limited pool of buyers.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center