Page 27 - Life Assurance
P. 27
for the insurance provided to older persons.
Once they become aware of this fact, some younger
persons may drop out of the plan and obtain their
insurance more cheaply elsewhere.
6- Simple and efficient administration.
The group plan should be simple and efficiently
administered Premiums are collected from the
employees by payroll deduction, which reduced the
insurer’s administrative expenses and keeps
participation in the plan high.
- Eligibility requirements in group insurance:
Before employees can participate in a group
insurance plan; they must meet certain eligibility
requirements, including the following:
*Be full- time employee.
*Satisfy a probationary period.
*Apply for insurance during the eligibility period.
*Be actively at work when insurance becomes
effective.
Group life insurance plans:
The major types of group life insurance
plans are the following:
1- Group term life insurance.
2- Group accident death and dismemberment
insurance (AD&D).
3- Group universal life insurance.
127 Life51/life/life 08
Once they become aware of this fact, some younger
persons may drop out of the plan and obtain their
insurance more cheaply elsewhere.
6- Simple and efficient administration.
The group plan should be simple and efficiently
administered Premiums are collected from the
employees by payroll deduction, which reduced the
insurer’s administrative expenses and keeps
participation in the plan high.
- Eligibility requirements in group insurance:
Before employees can participate in a group
insurance plan; they must meet certain eligibility
requirements, including the following:
*Be full- time employee.
*Satisfy a probationary period.
*Apply for insurance during the eligibility period.
*Be actively at work when insurance becomes
effective.
Group life insurance plans:
The major types of group life insurance
plans are the following:
1- Group term life insurance.
2- Group accident death and dismemberment
insurance (AD&D).
3- Group universal life insurance.
127 Life51/life/life 08
