WHAT IS GROUP LIFE INSURANCE ?

 Company group life insurance is the one that protects company employees. It may or may not be associated with the group's individual accident policy.

The person who contracts this type of insurance is the legal person employer, called the stipulator, with the insurance company to ensure the financial protection of its workers and respective beneficiaries. The scope of these social benefits may extend to spouses and descendants.

When there is an unexpected death of the family member who is the primary (or sole) breadwinner, either due to an accidental cause or a serious change in health condition, it is very frequent than the standard of living of the person who is left to fall. For this reason, the life insurance indemnity process acts as a safeguard for a few years, allowing family members to restructure household finances.

Group life insurance is structured on the basis of the financial distribution system, in which the reserve is formed by the group of policyholders of a particular insurance company. The premium paid by each insured person of the same type of policy over a given period is used to settle financial obligations. This includes every claim claimed during the same period.

WHEN IS LIFE INSURANCE MANDATORY?

The employment relationship does not indicate the obligation of the employer to provide life insurance to its employees. However, this does not mean that every type of business is exempt from offering this benefit to its professionals. Some categories guarantee this right through their collective agreements.

Find out which are the categories that have the mandatory life insurance contract:

• construction;
• Gas station;
• condominium (all employees);
• hospitality;
• bread;
• Food retail;
• restaurant and bar;
• educational (teachers and other professionals);
• forwarding agent;
• motorcycle boy;
• Service provider;
• pottery, clay porcelain and ceramics industry;
• bakery and confectionery industry;
• textile industry.

The management of the company must be attentive to the rules of these agreements so as not to suffer legal proceedings.

HOW TO SUBSCRIBE TO GROUP LIFE INSURANCE?

There is usually a limit to the number of employees an organization needs to access the group life insurance policy. The insurer determines it; that is, it is variable. There are cases in which the company only enters into agreements with groups of more than ten lives.

In others, the higher the number of insureds, the better the payment terms. So, do some research to find the one that meets your specific business needs.

There is the minimum and maximum age for inclusion of workers in the company life insurance contract, ranging from 14 to 65 years. Other requirements imposed for this type of insurance are that the beneficiaries present satisfactory health conditions and are in full professional activity.

It is up to the insurer to define the regulations for new policyholders to be integrated into group life insurance. Therefore, be careful when reading your draft contract before signing it, because it is the official document that establishes all the rules of the acquired protections.

Insured persons must inform their employer if they have a pre-existing condition, as this may have a different impact on the coverage of other workers.