Life Insurance / Accidental Death and Dismemberment (AD&D)

Life insurance can be offered by an employer or large-scale entity (i.e. association or labor organization) to its workers or members. Group life insurance is typically offered as a piece of a larger employer or membership benefit package.

By purchasing coverage through a provider on a “wholesale” basis for its members, the coverage costs for each individual worker/member is much less than if they had to purchase an individual policy. Those receiving coverage may not have to pay anything “out of pocket” for policy benefits or they may elect to have their portion of the premium payment deducted from their paycheck.

Accidental Death and Dismemberment (AD&D) is a policy that pays benefits to the beneficiary if the cause of death or dismemberment is an accident. This is a limited form of life insurance which is generally less expensive.

PREMIUMS ARE COLLECTED FOR THE ENTIRE GROUP, AND YOUR INSURANCE AMOUNT IS GENERALLY BASED ON EITHER:

For example, a death benefit might be equal to one or two years’ salary.
Evidence of good health generally is not required to obtain coverage. You and your employer may share the cost of coverage, or your employer may pay the entire amount; however, if you share the cost with your employer, your contribution may be deducted from your pay (with your consent). Benefits are paid to your beneficiary if you die while you are insured under the policy. In most all cases, the coverage is “group term insurance.”