Group life insurance is a type of guarantee contracted by companies or other organizations to cover the risk of a group of policyholders. It is, therefore, an insurance policy for a group of people linked together by a bond or common interest. This is the category most used by entrepreneurs who offer life insurance and group health insurance to their employees. By ensuring financial resources in complex and unforeseen times, the benefit is an effective way to bring more tranquility to employees or associates and their families. It safely guarantees the payment of the capital defined in policy to the insured himself or his beneficiaries, in the event of one of the events covered by the contracted guarantee. This means that if the employee suffers an accident, discovers a severe illness or dies, he or his familymembers will have support to pay the expenses and recover after the event.

Main coverage of group life insurance

The items included in the group life insurance policy may vary depending on the contract signed between the policyholder and the insurer. However, get to know a little about those that tend to be the primary group life insurance coverage.

Death and funeral assistance or assistance

Generally, introductory coverage of the group life insurance plan includes natural or accidental death. Along with the death indemnity, insurers usually offer extras such as funeral assistance or funeral assistance.

In the case of funeral assistance, beneficiaries will be entitled to reimbursement of funeral expenses. In the case of funeral assistance, there is no refund or free choice for the service provider, and companies indicated by the insurance company perform the services.

Total or partial permanent disability due to an accident (IPA)

As determined by contract, the beneficiaries receive compensation if an accident occurs that causes loss, reduction or final total or partial functional disability of a member or organ due to physical injury.

Total or partial permanent disability due to illness (ILPD)

The coverage of life insurance for companies also usually includes Indemnity in cases in which the insured person is known to be unable to exercise his main professional activity.

Additional coverage

Some insurance also cover spouses and children and may offer additional services, such as Indemnity in case of contractual terminations, food aid, congenital disease of children and daily due to temporary accidental incapacity.

Credit life insurance

There is a specific type of life insurance called credit life, which can also be group. It guarantees the same protections as traditional insurance. However, it also provides for the settlement of a debt in the event of the insured’s death.

At the credit life group insurance, the first beneficiary is the creditor, to whom the Indemnity must be paid. The amount is determined in the contract and limited to the insured capital contracted.

Credit life insurance is interesting because, although debts do not reach the heirs directly, debts can affect the deceased’s assets.

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