Benefits Of Group Life Insurance in Indian Wells and Palm Springs, CA

Posted by alldesertinsca on May 13th, 2023

Being covered by an insurance policy can ensure financial security during hard times. The risks to one's life are reduced considerably with the dependents being provided for even after the insured person's death. Sadly, the premium amount may not be affordable for many individuals who earn a small sum regularly. No worries! Numerous employers provide group life insurance in Indian Wells and Palm Springs, CA, as a part of employee benefits.

Statistics reveal that more than 60% of Americans today depend on group life insurance. Unfortunately, not all of them are aware of the facts and only follow the instructions of their employer blindly, thus obtaining the benefits as and when required. This is certainly not the right way to go about it, though. It is always better to be well-informed before signing a document. The same works for accepting group insurance regardless of how it benefits the employees.

Some of the key points of being covered by group life insurance include the following:-

· The insurance plan is usually meant to benefit the employees and is paid for by the employer

· Sometimes, the cost of the premium may be shared by the employer and the employee, with a percentage being paid by each party

· A few employees may seek additional coverage with the sum being deducted from their payroll regularly

· The initial ,000 of a group life insurance plan is also tax-free for the employee

· This is an inexpensive insurance policy that the beneficiaries cherish

· There is no associated underwriting or mandatory medical check-up for the insured group. On the contrary, the entire group is considered en-masse

· The death benefits provided to the beneficiary are limited, with the sum being much lesser than a conventional life insurance policy

The different procedures for calculating group life insurance benefits

· Fixed multiple-of-earnings- The sum of money received as a death benefit is directly proportional to one's salary. The dependants may get twice the last salary of the insured. This is a relatively safe method as the sum is bound to increase with the income

· Variable multiple-of-earnings- The amount is calculated at various times of employment. The death benefit may be equal to the salary when a specified premium is paid. A higher premium may result in twice the salary amount. The insurance carrier has the final say on how the death benefit will be calculated for a group.

· Flat-dollar-amount- The entire group of employees will be paid a fixed sum regardless of their income or positions they hold during the time of death

· Variable-dollar-amount- The death benefit is calculated differently after discussion with the employer. The sum may depend on the last drawn income or length of service, or both.

For individuals struggling to make a good life, the option of being covered by group life insurance in Indian Wells and Palm Springs, CA, is a Godsend. Understanding the pros and cons is essential before relying solely on it.