Group insurance refers to insurance that provides coverage for many insured persons with one insurance policy. Group insurance uses collective units as the object of coverage, with insurance companies and cooperative units as the parties, and concludes a contract in the form of an insurance policy. It is usually a group unit as the insured and the staff in the unit as the insured. Group insurance is characterized by exemption from a physical examination due to small unhealthy adverse selection factors.
Simplification of procedures:
Simplification of procedures of group insurance is because one policy serves many people; simplification of procedures, small adverse selection factors, and low insurance costs, However, to prevent adverse selection, specific business practices generally have the following provisions: (1) Restrictions on groups. The insured unit must be a legal person organization, and the insured must be a member of the unit organization. (2) 75% of the people in the group must take out insurance. (3) In a group, the amount of insurance, or the same amount of insurance, is determined separately according to the length of service, salary income, and job level. Group insurance mostly takes one year as the term and renews the insurance policy every year. The insurance premium can be borne by the unit or jointly by the unit and the individual. The insurance premium rate has different standards according to different occupations。
(I) Group term life insurance
Group term life insurance is often abbreviated as group term insurance, which refers to the employees in the selected group as the insured, the group, or the group employer as the insured, and the insurance period is one year of death insurance.
(2) Group Credit Life Insurance
Group credit life insurance refers to the preservation of the home loan sales and other regular payments to amortize the debt. It is provided by the lending institution or credit guarantee institutions as the insured (beneficiary) to the occurrence of many installments of the debtor and its lending relationship as the insured, with insurer one kind of signed group insurance contracts.
(3) Group endowment insurance
Group endowment insurance means that after an employee retires, the insurer pays a lump sum to the retired employee based on the insurance amount for his retirement life. This group insurance is called group endowment insurance.
With the development of enterprise annuities, the retirement protection of group employees has gradually shifted from group pension insurance to enterprise annuity insurance in recent years.
(IV) Group Life Insurance
Group life insurance is referred to as the group or employer- insured, groups of employees for the insured, once the death of the insured by the insurer in a responsible pay the death benefit of insurance products.
(V) Paying out life insurance after retirement
Lifetime insurance after retirement is a group life insurance set up in the form of a corporate annuity. Employees of the group pay the insurance premiums themselves and agree to pay it off annually. The difference in annual protection is made up of the group’s employer by purchasing term insurance.