One type of insurance that can provide such protection for numerous EMTs is group term life insurance. EMTS must have adequate insurance coverage to protect themselves and their families if the unexpected happens.
Group term is a type of life insurance that provides coverage for a group of people, typically members of an organization or company employees. In a group term life insurance policy, the employer or organization typically pays the premiums and spreads the costs among the members.
How Does Group Term Life Insurance Work?
The Society for Human Resource Management’s data shows that around 80% of companies provide company-paid group life insurance as a benefit.
The policy is called term insurance and is available to eligible employees, such as those who are permanent or have had employment for at least 30 days
Typically, the amount of coverage offered under a group term life policy is equal to the employee’s annual salary. The employer usually covers basic coverage premiums, with additional coverage amounts available for purchase by employees at an extra premium cost.
What Does It Not Cover?
Group term life insurance policies typically offer comprehensive coverage with few or no exclusions. However, the coverage may have limitations, such as death from criminal activity or high-risk activities like skydiving.
In addition, most policies do not cover death or suicide within the first two or three years of the policy’s term, depending on the insurer. Each policy will have its own set of rules and regulations, so it’s important to carefully review the policy terms to ensure the coverage meets the individual’s needs and expectations.
What Are the Pros and Cons of These Policies?
Group term life insurance is an affordable option, particularly for younger participants, and many eligible employees automatically have coverage without going through underwriting.
However, unlike individual term insurance plans that often guarantee a fixed rate for 20 to 30 years, group plans typically have rate bands, meaning that the cost of insurance increases automatically in increments such as ages 35, 40, 25, and so on.
While cost-effective, the coverage offered by group term life insurance may only be sufficient. Furthermore, individuals should consider supplementing their coverage with an individual plan.
Organizations offering insurance often limit the total coverage available to their members based on factors like tenure, number of dependents, base salary, and employment statuses such as full-time, contract, associate, or executive. Many group term plans only cover an individual’s base salary and exclude other forms of compensation like bonuses, reimbursement, commission, or incentives that some report as income.
About Provident Insurance Programs
With roots dating back to 1902, Provident Insurance Programs is a program administrator that serves paid and volunteer firefighters in addition to emergency medical responders with numerous custom-tailored insurance programs. We’ve also extended our expertise and experience to offer benefit plans and coverages to participant groups as well as Transportation Benefits. We are committed to continuing to provide superior customer service, and would be happy to speak with you to provide further information. Give us a call today at (855) 201-8880 to speak with one of our representatives.