Facts About Virginia Group Life Insurance Plans

Facts About Virginia Group Life Insurance Plans

Virginia group life insurance, much like with any other state in the US, can be part of an employee benefit plan that is paid for by the employer, or a voluntary offering whereby the employee pays for the coverage. For policies paid by a business owner, the benefit can often be equivalent to a full year’s salary, an amount that, in today’s culture, may not be sufficient for most people. These types of policies can be viewed as an added benefit or “supplemental” to other life coverage an employee may already have.

One of the assets associated with employers providing group insurance plans is the higher rate of employee retention. Workers are more likely to stay with an employer when they know that their family will be well taken care of in the event that health issues become a concern. If an employee wants additional coverage on top of what an employer is willing to purchase, he or she may have to pay for it individually. Purchasing additional coverage outside of what is offered through the group policy will likely require that the employee undergo a medical exam to determine the level of insurability based on his or her health.

Group life insurance policies tend to be less expensive

This is based on the fact that many group policies are only effective while an employee within the group is employed at that particular company. Most group life insurance is sold on a term basis. Term life insurance pays a death benefit if the policyholder passes away within a specified time period.

In general, term life insurance is much less expensive than permanent life. In fact, term life premiums have decreased markedly, particularly during the past decade, due to the fact that Americans are living longer on average. The insurance company will usually consider the following factors about a business in order to figure out a group rate:

  • Number of employees within the group
  • Average age of employees
  • Ratio of female to male (based on the statistic that women tend to live longer than men)
  • Number of smokers
  • Risk-factors associated with the business

For example, a marketing firm would probably have a lower group rate than a roofing company for equivalent coverage, based on the business risk.

Who qualifies for Virginia Group Life Insurance?

Any employee who has a serious medical condition may still be a part of the group, as long as he or she is still an active worker. However, any employees out on disability leave are not eligible for group life insurance until they return to work, unless they went on leave after the policy had been issued.


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