Why Group Term & Accidental Death and Dismemberment?

Because using the group venue to purchase large, guaranteed issue amounts of life insurance has always been a staple in the employee benefits arena.

The most notable characteristic of group term insurance is the significantly reduced cost per thousand versus an individual life policy.  There is value to the risk being spread over a larger number of people, making the underwriting of the risk less rigorous, or possibly none at all which translates into more guaranteed issue insurance.

Many clients use a number of formulas to deliver the term coverage most employees want. Using a minimum of three tiers for a variance among classes delivers an easy-to-achieve life insurance schedule which is both fair and meets non-discrimination standards. The simple solution if there is concern regarding discrimination would be to offer a level benefit for all, job classification not withstanding.

Which delivers the most…?

Probably using a formula tied to Annual Income has become the most popular for  employer paid life insurance, and is even more so in delivering optional voluntary life paid for by the employee for himself and dependents.  Once again, we are able to use multipliers of the Annual Income to determine how much an employee could opt for on a voluntary basis.

We have a large selection of companies that can deliver the Group Term and AD&D we detailed above.  Our marketing usually consists of having three or four of the most competitive carriers quote on our clients plan, but if you see one of the insurers listed below for which you have a preference, please let us know and we’ll make sure that company is contacted.

Life Insurance Companies: