Among the most important things most persons shopping for life insurance cover think is really vital for them to consider are price lines and future financial commitments. While rates for policies and the kind of financial liabilities, such as how many dependents one has and any mortgages etc., the policy holder may want to cover the financial needs for, are indeed important aspects to consider for taking out a life insurance policy. However, in the case of group term life insurance coverage, there are other equally important factors to think about as well.
We cover some of these crucial factors every group term life insurance policy buyer must know before signing up for the plan from even a reputed insurance company as many providers have a lot of important details covered up in fine print that reduce the real value of a policy.
Therefore, comparing various plans is a good way to save money on buying coverage and since rates can vary from company to company, even if providers offer the same coverage, it makes sense to opt for the best coverage one can afford, especially if the employer has a scheme for group term life insurance at a lower than market rate.
Furthermore, for those joining new jobs at bigger companies, often it is found that insurance as provided to employees under a company benefit scheme will typically come at a lower rate than the retail ones if one were to purchase this individually. But, personal finance experts advise those looking at insurance as a financial tool for providing financial death benefits to their families in the event of their death, to consider a program even if it means a slight increase in premiums.
This is because financial experts know that policyholders are more at peace after having provided a lot more financial protection in terms of death benefits for their family with a coverage plan, which is offered by an employer to workers because it usually comes into force around the retirement age of the employee. Since this is usually 65 years of age for most companies and a time when money is most needed, this kind of coverage as offered under a employee benefit package has an advantage of the major part of the premiums taken care of by the employer. (Employees only contribute a small, monthly portion of the premiums).
So, policies are in the interest of any long-term employee who wants to extend financial death benefits to his or her family paying low monthly premium rates with employer covering most of the amount and also getting medical as well as policy coverage – under one plan!
This is the reason why policies offering greater coverage are often used as an incentive for drawing more employees into a company during their recruitment period.