How Much Coverage Do Group Life Policies Offer?
Group life policies can be set up to offer almost any amount of protection. Policies may provide only basic coverage -- as little as $1,000 in some cases -- or they can provide coverage that’s several times employees’ annual salaries.
Are There Different Kinds of Group Life Policies?
A few insurers may offer whole or universal group life policies, but the vast majority of group life policies provide term coverage. Term coverage normally provides a set amount of protection and have fixed premiums, and the coverage is effective for a defined period of time. In group life policies, the defined period of time is usually while an individual is an employee or member. Once a person ceases being an employee or member, their coverage is typically terminated.
Are Employees or Members Automatically Enrolled in Group Life Policies?
Whether employees or members are automatically enrolled in a group life policy typically depends on how the policy is set up. If all of the policy’s premiums are paid by a business or other entity, employees or members may automatically be enrolled in the policy because enrollment doesn’t cost them anything. If employees or members are required to pay at least some of the policy’s premiums, they typically are given the option to sign up for or forgo coverage.
When employees or members are automatically signed up for a group life policy, the details of the policy and benefits that it provides should still be explained to everyone who is enrolled. Employees and members should understand the benefits they’re entitled to and what causes of death are covered, and they also should be given the opportunity to name beneficiaries.
What New Jersey Businesses and Organizations Usually Offer Group Life Coverage?
Many businesses, nonprofits, governments, and membership associations in New Jersey offer some form of group life coverage. Businesses and organizations from across NJ often find that it’s an easy way to enhance employees or members’ benefits. Additionally, because the amount of coverage can vary, businesses and organizations are often able to find a policy that fits within their budget.
How Can Businesses and Organizations in New Jersey Set Up a Group Life Policy?
Group life insurance is often included as part of a company’s or other entities’ group benefits package. New Jersey businesses and other organizations that would like to add group life coverage to the benefits that they offer their employees or members can compare available policies by talking with an advisor that specializes benefits packages. A specialized advisor will be able to help a business or organization look at different coverage options, select a policy, and set the policy up.