Group Life Insurancebreak-even insurance
A group life insurance policy?
A group life insurance plan is a form of life insurance in which a whole group of persons is covered by a unitary agreement. The policyholder is usually an employers or a unit such as a work organisation and the Directive applies to the staff or members of the group. The group life insurance is often offered as part of a full benefits plan for staff.
For the most part, the costs of group insurance are far lower than what staff or members would normally spend on a similar amount of cover. If you are therefore provided with a group life insurance policy through your employers or another group, you should usually take it out, especially if you do not have another life insurance policy or if your own cover is insufficient.
The policyholder, the employers or another unit, retains the insurance policies themselves, the so-called framework contracts. As a rule, all insured persons get an insurance document that acts as evidence of the insurance, but is not the insurance premium. Just as with other life insurance policies, you can also select your beneficiaries for group life insurance.
Risk insurance is the most frequent type of group life insurance. As a rule, the group duration is granted in the shape of an annuity, renewables-based risk insurance. If the group insurance is taken out through your employers, the employers usually pay most (and in some cases all) of the premium. Your cover is usually one to two years of your total year' pay.
The group duration insurance will remain in effect until termination of your contract of service or until termination of the specified duration. It may be possible for you to switch your group insurance to an individually tailored insurance plan when you depart from your work. Usually, however, most consumers opt not to do so because these premium conversions are usually much higher than those for similar insurance products available to consumers.
Usually, only those who are not otherwise insurable use this converter options.