Podcast
Questions and Answers
Group life insurance policies are generally written as?
Group life insurance policies are generally written as?
When an employee is terminated, which statement about a group term life conversion is true?
When an employee is terminated, which statement about a group term life conversion is true?
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
Which provision is NOT a requirement in a group life policy?
Which provision is NOT a requirement in a group life policy?
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Which requirement must be met for an association to be eligible for a group life plan?
Which requirement must be met for an association to be eligible for a group life plan?
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Under a trustee group life policy, who would be eligible for a certificate of coverage?
Under a trustee group life policy, who would be eligible for a certificate of coverage?
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An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be?
An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be?
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A noncontributory group term life plan is characterized by?
A noncontributory group term life plan is characterized by?
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Which of the following is an important underwriting principle of group life insurance?
Which of the following is an important underwriting principle of group life insurance?
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S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
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Which of the following statements about noncontributory employee group life insurance is FALSE?
Which of the following statements about noncontributory employee group life insurance is FALSE?
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What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
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Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group term life plan to all its eligible employees?
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group term life plan to all its eligible employees?
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What type of group insurance plan involves employees sharing the cost?
What type of group insurance plan involves employees sharing the cost?
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Study Notes
Group Life Insurance Basics
- Group life insurance policies are commonly structured as annually renewable term insurance.
Group Term Life Conversion
- Upon employee termination, if death occurs during the 31-day conversion period, policy proceeds will be paid, allowing conversion to an individual policy.
Contribution Types
- A contributory group life insurance plan involves employees sharing the cost of the insurance.
Required Provisions
- An accidental provision is not mandatory in group life policies, unlike conversion, grace period, or incontestable period.
Association Eligibility
- For an association to qualify for a group life plan, it must be formed for a purpose other than acquiring insurance.
Certificate of Coverage
- Under trustee group life policies, employees are eligible for a certificate of coverage.
Conversion After Retirement
- Retired employees can convert their group life coverage to an individual permanent policy at an individual rate.
Noncontributory Plan Characteristics
- A noncontributory group term life plan is entirely funded by the employer without employee contribution.
Underwriting Principles
- A key underwriting principle in group life insurance is that everyone must be covered within the group.
Claims During Conversion
- If an individual dies while converting group life insurance to an individual policy, full benefits are payable under the master contract.
Noncontributory Plan Misconceptions
- It is false that a minimum number of employees is required to participate in noncontributory group life insurance plans.
Conversion Feature
- The conversion feature allows individuals to maintain coverage without needing to prove insurability upon leaving the group.
Tax Treatment for Employers
- Under federal tax laws, employers can claim a tax deduction for a portion of the premiums paid for contributory group term life plans over $50,000.
Cost Sharing Plans
- A contributory plan is characterized by employees sharing the cost of insurance coverage.
Coverage Conversion Specifics
- An employee with $25,000 in group term life coverage may convert to an equivalent individual policy, possibly increasing their coverage.
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Test your knowledge of group life insurance with these flashcards. Each card covers essential definitions and key concepts related to group life policies. Perfect for students or professionals seeking to understand group life insurance better.
