Group Life Insurance Dallas Texas TX
Reader’s Question:
What is included in the underwriting of group life insurance in Dallas, Texas TX? Does each applicant for life insurance go through age and health evaluation of the life insurance company for the group life insurance?
Nikka
Dallas, TX
It would be tedious if a company has 50 employees who are provided with group life insurance and each of them has to undergo medical examination and questionnaires just to have group life insurance. So to answer you question, no the group life insurance does not have the same process of underwriting as personal or individual application of life insurance.
Group life insurance is usually a term life insurance that covers at least 5 people and up. The individual insurability is not normally considered for the underwriting. Instead, the underwriting is based on the size and the turnover of employees of the organization. For small businesses, it may be categorized under 15 and less group life insurance and the rate of employment turnover is considered as well. Aside from turnover, some life insurance companies consider the type of jobs the employees have. Usually, a job that is risky and are faced with daily hazards are under tougher underwriting. Aside from the concerns on the employees, the financial strength of the organization is also highly considered in underwriting.
In essence, the underwriting is viewed in groups rather on individual cases. Group life insurance companies in Dallas, TX however is also open to the employee buying personal life insurance. In this case, the buyer may have to undergo the usual individual insurability requirement even though he is already included in the group life insurance of the company he is employed.
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