Group Life Insurance is a type of insurance policy generally offered by employers and organizations to provide life insurance coverage to its employees or members. These days, Group Life Insurance plans have become the standard and preferred form of life insurance protection for many employers and organizations alike. It provides simple financial security and independence to the loved ones of the employee in the event of his/her death or total disability. Depending on the insurer and the plan chosen, other benefits such as critical illness and medical benefits could be attached to the basic plan to provide comprehensive protection. If you are an employer or organization and currently do not offer Group Life Insurance coverage, it should be a part of your complete benefit package to attract and retain talent and to ensure financial protection for your employees.
Benefits of Group Life Insurance
Employers/Organizations
Affordable Premiums
Generally, Group Life Insurance is more affordable than individual life policies for a similar amount of coverage as the risk is spread across a greater number of people.
Attractive Incentive
As part of a complete benefit package, it is something that will attract and retain talent as it gives employees a sense of security and a peace of mind which will lead to increased productivity and loyalty.
Simple Payment Process
Premium payments are generally due annually except when there are movements of employees, then additional/refund of premium will be due at that time.
Tax-Free Benefit
In Cambodia, if the same coverage is provided to all employees regardless of employment or job classification, the insurance premiums shall not be subject to fringe benefit tax of 20%.
Employees/Members
Free or Low-Cost Benefit
Group Life Insurance is usually an incentive provided by employers and organizations as part of a complete benefit package that is typically free of charge to the employee.
Customizable Plan
Employees may choose to opt-in for additional or higher coverage in addition to the standard plan provided by the employer or organization. Depending on insurer and plan chosen, spouse and children can also be added to the policy.
Free Cover Limit
Most Group Life Insurance policies typically include a Free Cover Limit where underwriting is not required if the coverage is below the Free Cover Limit. This leads to a more simplified process and is a reason why it is generally easier to become protected under a group plan.
Tax-Free Benefit
The insurance benefit received by the insured or beneficiary as the case may be is tax-free and also leads to a simplified claim process.
Eligibility
The acceptance of coverage and the insurance premium amount will depend on a variety of factors including the age, gender, coverage amount, occupation class and health condition of the employee. In addition, as a requirement from the insurer, there will be a minimum number of members required in order to qualify for group coverage. Employers and organizations may also have requirements before allowing employees to participate in the Group Life Insurance plan such as passing a probationary period before being granted coverage. Either way, when searching for a group policy, thoroughly research and compare all of your options to ensure you are getting the best life insurance policy possible.
If you are interested in Group Life Insurance and would like to learn more about it, please contact us today!
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