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Group life insurance is among the benefits provided by companies to their employees to insure them, and through the group life insurance policy, it guarantees compensation to the heirs of the insured with an amount of money in the event of natural death, in addition to the possibility of adding other coverages such as death as a result of an accident or any damage caused to the insured that leads to total or partial disability as a result of an accident.
As we approach 2023, many people and companies realize the importance of life insurance, especially after going through the previous Corona crisis, and therefore each of us is looking for and seeking the benefits of life insurance.
In the following lines, we explain to you all the details about the group life insurance service provided by Brokerage Insurance, as well as its subscription prices and how to secure a policy for employees of private companies that guarantees their rights, in addition to clarifying the conditions for participating in the program and it's most important advantages that it provides to companies.
What is Group Life Insurance?
Group life insurance is a contract between two parties: the insurance company and the policyholder "mostly companies and institutions", and the life insurance policy includes that the insurer "the owner of the company" pays an amount of money that can be deducted monthly from the employees benefiting from it so that the policy secures a sum of money for the person's family in the event of death, that amount depends on the premiums paid by the policyholder during his life.
Group life insurance is an inexpensive type of insurance policy, may be free for some employees, and is very common in companies.
Group life insurance often has a relatively low amount of coverage, and employees under this type of insurance do not need to undergo a medical examination as the nature of individual insurance and are not subject to individual policing.
Types of life insurance policies
The types of life insurance policies vary to meet the needs of different institutions and companies, depending on the type of insurance it is individual or if it is collective, and they are divided as follows:
Temporary Life Insurance
It is one of the types of individual insurance and life insurance lasts for a specific period of a certain number of years, then ends, in which the individual can choose the number of years himself starting from 10, 20, or 30 years.
The objective of that document is to strike a balance between the material affordability of the document and the long-term financial strength.
Permanent Life Insurance
Perpetual life insurance remains valid throughout the life of the insured unless the policyholder stops paying premiums or waives the policy at some point, usually more expensive than temporary.
Group Life Insurance
The most common type of group life insurance is group insurance which is renewed annually, as this type of insurance provides only death compensation and is the least expensive option.
Group life insurance is inexpensive but offers the opportunity to build cash value in tandem to compensate employees and their parents in the event of death.
What are the conditions for group life insurance?
There are some conditions that insurance companies set while launching group life insurance policies, which include:
Special exceptions apply for suicide, where the policy becomes null and void if an insured employee commits suicide within a specified period of time (usually two years after the date of the policy).
Any misrepresentations by the insured in the application may also be grounds for invalidation of the policy.
The basic value of a policy is the initial amount that will be paid upon the death of the insured or when the policy becomes due, although actual death compensation can be greater or less than the nominal amount.
What does a group life insurance policy include?
The life insurance policy includes some points that must be clarified for those who wish to subscribe to it, including:
Responsible for applying for group life insurance is the employer or any other large-scale entity such as an institution or organization that insures its workers or members.
Group life insurance is fairly inexpensive, and may be free because many members pay for one policy, the group policy.
Some organizations require group members to participate for at least a minimum of time before giving them coverage, which is generally essential.
Unlike individual life insurance, a group life insurance policy does not require individuals to undergo medical examinations and other policies.
What advantages of Group Life Insurance?
There are many benefits and advantages of life insurance that insurance companies grant to other institutions, below we present to you some of the most important features provided by life insurance policies:
Life insurance programs are characterized by the fact that when the insured died naturally during the insurance period, the insurance company is responsible for disbursing the insurance amount to the family of the deceased, in addition to the profits until the period of death.
When the insured dies as a result of an accident in the company or during work, the company pays him to double the sum insured, adding profits to the original amount until death.
If the person's insurance period expires, the insured has two options: to receive the insurance amount with profits immediately or to pay an annual pension for a lifetime.
Life Insurance Policy Prices
Like many companies and institutions, when looking for an insurance policy, it is of course looking for its price, and from here it must be clarified that the price of life insurance is affected by many components, the most important of which are:
The type of document that the company chooses.
The extent of the risks that can be exposed to during work, for example, the insurance policy for heavy work companies and employment is not equal to companies that depend on normal daily work.
The number of employees that the company applies for insurance affects the amount of the policy in some way.
According to the above factors, the prices of group life insurance for companies vary greatly depending on the number of years that the company is interested in insuring its employees at the time, and it starts with:
The minimum insurance amount that can be paid to start a group insurance policy is EGP 5,000, and the company also determines the minimum age for the insured to be 15 years, while the largest age at which a person can insure himself is the age of 55 years.
The minimum insurance period in this scheme is 10 years.