Safe Money Specialist, Safe Money Solutions LLC, Harrisonburg, Virginia 22801
In a group life insurance policy the employer will be designated as the Master Policy Holder and the employee, if coverage is elected, will be designated as the insured.
Any employee who elects to be covered under the group plan will be issued a "Certificate of Insurance", and in the event of death their beneficiaries will receive the amount of benefit selected/ or owed.
The owner of a group life plan is the business owner or corporation providing coverage to the employees. The owner would hold the master policy and the employees would hold a certificate of coverage. Group life insurance is a nice perk for both employer and employee. For the employer it is a very affordable benefit to help secure employee turnover. For the employee, it is a nice added bonus to their personal financial plan. However, group life should never take the place of individual life insurance. If you change jobs in almost every case you will lose this coverage and run the risk of losing insurability as well.
That is a great question! In the most common scenario's, the owner of the group life policy is the employer or entity that offers the insurance to you. At work, your group life plan offered in your benefit package will list your immediate employer, or the parent company of your employer as the owner ( so KFC may list KFC, or they may list Yum Foods, or they may list Pepsi, depending upon who purchased the policy). Some charitable organizations will also offer benefits, and the charity or its trustees are generally the owners. Think of it as like you owning the policy for your child, though they've become old enough to start paying for some of the premium. I hope that helps, thanks for asking!
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Any employee who elects to be covered under the group plan will be issued a "Certificate of Insurance", and in the event of death their beneficiaries will receive the amount of benefit selected/ or owed.