Business Administration - Human Resources HRA840 Chapter Notes - Chapter 6: Absenteeism, Stress Management, Term Life Insurance
11 Mar 2016
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Basic coverage 100% employer paid plus additional optional coverage employee paid. No medical evidence of insurability required if elected when rst eligible. Medical evidence will be required if more coverage is wanted at a later date. Design: flat amount all members get the same dollar amount of coverage common in union contracts. Earnings related each member is covered on a given multiple of annual earnings commonly 1, 2 or 3 times earnings. Premiums are costed per ,000 of salary; e. g. , $. 045 per ,000 for an employee earning. On termination of employment, the group life insurance continues coverage for 31 days. During this period, the individual can convert their group coverage into an individual plan, with the same carrier, without the provision of medical evidence of insurability. Survivor income bene ts: a monthly payment is made to the surviving spouse on the death of the employee.
