A976
Briefly describe the following types of group life insurance plans: a. Group term life insurance b. Group accidental death and dismemberment insurance (AD&D) c. Group universal life insurance d. Worksite marketing program
Life insurance. (Contextual header).
Life insurance is a contract between the insurance company and the insurer and is done in exchange for premium payments. The insurance company gives some money to the beneficiaries of the insured person upon his death. The amount of money given is called the death benefit.
Briefly describe the following types of group life insurance plans:
(a). Group term life insurance
It is a life insurance plan which provides death benefits to employees who are covered under specific benefit plans. Some of the benefits under these plans include reliance standard offers and counseling services. The program is provided to both active, full-time, and even part-time employees in groups of 10 or more. It is applied upon the death of an employee.
(b). Group accidental death and dismemberment insurance (AD&D)
It is an insurance plan that affords to cover specific losses that are sustained because of any given injuries. The insurance plan is subject to specified time limits and exclusions of the employee. Dismemberment includes the employees losing some use of body parts such as limps or speech. Because of its coverage limitations, the prospective buyer should read its terms and policies carefully.
(c). Group universal life insurance
It is an insurance cover that is less costly when it is offered to a group of people as compared to an individual. The organizations purchase the insurance plan to provide their workers with insurance covers.
(d). Worksite marketing program.
It is also called supplemental insurance. The employers provide it to employees at their workplace. It is in the form of goods and services, and employees are not obligated to buy them though they are beneficial to them. They include health care services and insurance.