Understand Extension of Life Benefits, Accidental Death and Dismemberment of Group Insurance

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As we mentioned in the other articles, many corporations will offer competitive packages, and that’s even a strategy in hiring and retaining employees. These competitive packages include group insurance to plans that provide individual retirement accounts or traditional registered pension plans, etc. In this article, we will discuss the extension of life benefits, accidental death and dismemberment of group Insurance.

1. Extension of life benefits after retirement
The cost of the full life insurance benefit are not carried from the date of retirement until death upon the retirement but the coverage can be modified in any of several ways
a) The benefit can continue at a reduced 50% level with a maximum amount indicated in the group contract. Premium may be required eihter by single premium or paid by the employer or from the retired employee.
b) The coverage may continue with an annually reducing benefit for the first five years of retirement.
c) A residual benefit of $2,000 a year for life.

2. Accidental death and dismemberment
A accidental death and dismemberment is usually included as part of the life benefit. A principle is payable to employee beneficiary in the event of accidental death matching the amount of life insurance benefit. The coverage of dismemberment in event of dismemberment is payable to employee depending to the detail lists and each with its own percentage loss of the amount of life insurance benefit.

Remember the same beneficiary designations apply to group life benefits as to individual contracts. You may even designate an irrevocable beneficiary to the group life benefit if you wish and most group insurance contracts do not contain a suicide two-year exclusion clause as to traditional life insurance policies.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://groupinsurance06.blogspot.com/
http://groupinsurance05.blogspot.com/