Coverage: Collective life insurance provides insured persons (employees) with insurance coverage in the event of death. The insurance company pays the amount of coverage to the beneficiary, who may be specified by the employee (for example, family or other relatives).
Cost: Employees insured under collective life insurance may benefit from lower premiums than if they purchased the policy on their own. This is due to the fact that the risk of insured events is distributed among all members of the group, which makes it possible to reduce the insurance cost for each individual employee.
Optional Coverage: Collective life insurance is generally provided as optional coverage, and employees may choose to opt-in or opt-out based on their needs and financial capacity.
Continuity: Some collective insurance plans allow carry over life insurance in the event of resignation or job change. This is a very convenient option, but such policies usually cost a little more.
Collective conditions: Insurance conditions, including the coverage amount, duration of coverage and payment terms, are usually the same for all members of the group and are determined by the employer in cooperation with the insurance company.
Collective life insurance in the United States is a popular tool that provides protection and financial support for family members and loved ones of employees in the event of the unexpected loss of an insured person.
Source: https://finance.yahoo.com/news/group-life-insurance-134733857.html
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