01/02/2025
Some facts about “Group Life Insurance”:
1. Group life insurance is typically term life insurance, which means it provides coverage for a specific period of time. This makes it temporary and not permanent. When an employee's coverage ends, they may need to apply for an individual policy. However, applying for an individual policy can be more
expensive due to age or developing health conditions.
2. Some employers offer convertible term insurance, which allows employees to switch their coverage from a group plan to an individual plan if they leave the company. However, this isn't the case across the board.
3. Another option is to review the life insurance policy with the former employer. The policy may contain detailed terms, conditions, and exclusions that may not be immediately clear.
4. “Actively Employed or Working” definition -
"Actively working" in the context of a group life insurance policy means that an employee is currently performing their regular job duties and is considered eligible for coverage under the policy, essentially signifying they are not on leave or absent from work for an extended period, allowing them to access the group insurance benefits; this is often referred to as an "actively at work" clause within the policy terms.
Key points about "actively working" in group life insurance:
a. Eligibility requirement:
Most group life insurance plans require employees to be "actively at work" to be eligible for coverage.
b. Prevents abuse:
This clause prevents individuals from taking long periods of leave while still benefiting from the group insurance rates.
c. May vary by policy:
The exact definition of "actively at work" can differ depending on the specific insurance policy, but generally means performing normal job duties.
d. Impact on coverage:
If an employee is not considered "actively at work," they may lose access to their group life insurance coverage.
