Group Life Insurance in Vermont

What is Group Life Insurance?

Life insurance is one of the primary ways people continue to financially provide for others after passing away. For many Vermont residents whose families rely on their incomes, life insurance is an essential protection. Businesses can help their employees obtain coverage by offering a group life insurance option within their benefits package.

Group life insurance is a type of life insurance that provides coverage to a defined collection of people. Whereas personal life policies typically provide coverage for a single person, group life policies usually afford coverage for multiple people.

What Businesses in Vermont Should Offer a Group Life Policy?

Many businesses in Vermont may want to offer their employees a group life policy, for this is a coverage that lots of different people want. Providing coverage is often a simple way to improve a business’ benefits package, which can help attract and retain high-quality talent.

In addition to businesses, other organizations sometimes also offer members group life policies. For example, governments and nonprofits may extend an option to their employees. Additionally, some unions and trade organizations have a policy that’s available to their members.

How Much Coverage is Available Through Group Life Policies?

While there are lots of businesses and groups that may want to make a group life policy available, there isn’t one policy that’s right for every situation. Some businesses decide to offer a small amount of coverage for employees, while others offer much more extensive coverage.

For example, policies offer as little as $1,000 worth of coverage in some cases. In other situations, businesses sign up for policies that offer several times employees’ annual salaries.

An insurance agent who specializes in these plans can help businesses determine what they want to make available and find a policy that makes sense for their situation.

Can Employers Automatically Enroll Employees in Group Life Policies?

In situations where premiums are fully paid by an employer, it may make sense to automatically enroll employees in the paid-for group life coverage. When employees pay a portion or all of the premiums, however, they’re normally offered the option of whether or not they want the coverage -- and aren’t automatically signed up.

Even when premiums are paid by an employer and employees are automatically enrolled, every person that receives coverage should still be made aware of the plan’s benefits upon enrollment. Employees ought to have the opportunity to name their desired beneficiaries, and they should know what death benefits their beneficiaries are entitled to if they pass away in a covered incident. This information helps employees fully appreciate their benefits package, and it might influence what individual life insurance they purchase.

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Are There Whole and Term Group Life Policies?

While a few insurance companies might offer whole or universal group life policies, most of these policies are underwritten as term policies. Term policies generally provide a set benefit for a specified amount of time, and they usually have a fixed premium.

Term policies that are crafted as group life policies normally provide coverage for the time when a person is a qualifying employee or member. Once a person leaves their business or organization, their coverage tends to cease.

Who Pays Group Life Policies’ Premiums?

The premiums for group life policies that are made available by businesses and other organizations may be paid by businesses, their employees or a combination of the two.

Businesses may pay the full premium for all employees and include the coverage as a standard benefit that everyone receives, or they may make the benefit optional and require employees who select it to pay a portion of the premiums. When employees pay the premiums, they may pay a portion or all of the premiums.

How Can Vermont Businesses Get Group Life Insurance?

For help finding group life insurance to offer your business’ employees or organization’s members, contact the independent Vermont insurance agents at Paige & Campbell Insurance. Our agents have the expertise to help you find a plan that makes sense for your business and employees, and they can show you plan options from multiple insurance companies so that you can select the best available one.