Albert Einstein once said until you know where you are coming from, you cannot know where you are going to; thus, it is of high importance that the concept of Life Insurance should be understood first before giving clarity as to what Business Life Insurance entails. Life Insurance can be said to be the Insurance that pays out a particular amount of money either in the case of death or after a stipulated period of time. In life insurance, there must be an event that takes place either at death or at a particular period of time, where and when the money is needed. Most times when the insured has passed on during the case of accident of murder, the company under which the contract was made and signed will, therefore, pay a certain amount of money to an individual that’s found in the late insured’s will.
The ABC of Business Life Insurance
The term ABC starts with the necessary information that is required of one to know about business life insurance. It is worthy to be noted that business life insurance is not really individualistic per say, unlike individual life insurance. Business Life Insurance is an insurance that is purchased by an employer not just for his benefits alone but also that of his employees. Thus; it can also be referred to be known as a group Life Insurance Policy.
Although several persons do refer to it as a combined life insurance policy that has to do with group (collection) of individuals. The insurance rate under the Business life Insurance involves coverage in bulk and thus; as a result of this the members involves are required to pay little premiums on a monthly Basis, unlike the individual life Insurance that requires huge payment of monthly premiums. When the employer purchases this life insurance for its employees, he pays a certain amount of percentage of the monthly premiums whereas the employees are required to pay their own part, but the employer acts as the master of the contract.
On the Basis of agreement, there are certain deformities and demerits to this kind of business Life Insurance and they are;
- The contract seizes to exist the moment the employee resigns or is been fire from the company.
- The employee has little control and most times are asked to pay additional coverage that is not incorporated initially in the business life insurance.
- Even if you are healthy, you may be asked to pay the same price to those that are not healthy or at low risk; thus, there are no price premium differences within the employees just as the employees may vary in their several deformities.
READ: Life Insurance Quotes Online – Types of Life Insurance
