Canada’s life insurance industry is a trillion-dollar business that is growing rapidly every year. In 2019, there were 22 million Canadians with $5 trillion worth of life insurance coverage. Many people don’t know the value of life insurance and how it works.
This article explains how life insurance works when an employer offers it as part of a group plan. It also explains why life insurance can bring your family Stronger together.
How Does Group Insurance Work?
Group insurance provides benefits coverage for a specific group (e.g., company employees, organization, or labor union). Insurance covers financial consequences that can happen from illness and death.
What’s The Difference Between Individual And Group Insurance?
An employer, a company, or a community can provide group insurance. Group insurance covers a group of people, as well as their dependents like their spouses and children.
A person can purchase individual insurance. Individual insurance is usually more expensive due to the inability to multiply claims over multiple people.
What Benefits Are Covered By Group Insurance For Employees?
The coverage can vary according to the employer. The employer determines the level of employee coverage. The most popular group insurance products are Health Insurance and Dental Insurance, Life Insurance, etc.
Points To Consider
This benefit is tied to or related to work. Employees who lose their jobs, change jobs or retires, then that employee could be at risk. Many group plans coverage starts to decrease at 65 and ends at 70. Certain plans allow you to change to an individual policy if you are leaving from the group or termination of the coverage for other reasons. Keep in mind that the group life insurance policy might not be enough to cover the financial needs of the spouse or dependents. Most people have separate life insurance policies that are not part of the group plan to reduce this risk.
What Are The Benefits Of Purchasing Group Insurance?
Employers who offer group insurance to their employees get-
- Improved productivity,
- Job Satisfaction and engagement;
- Being competitive in the job market for potential job seekers;
- Protecting the well-being and health of employees and their families;
Many businesses have been affected due to the pandemic, and as a result, employers are trying to reduce their costs, including group insurance. You can find out more here about how the employer’s priorities have changed during this pandemic.
Group insurance offers the following benefits to employees:
- The costs of individual insurance are much lower than the cost of buying it.
- They also provide financial security in case of an accident or illness.
It doesn’t matter if you have group insurance through an employer or life insurance; it is vital to protect your family in a catastrophic event.
If you are an employer, you may include life insurance in your group benefits package. Although it is not a very desired benefit for employees, it will be appreciated by them.