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There are some types of insurance policies that we buy as individuals or with our family such as life, car, and home insurance. Other insurance policies can be purchased as part of a group scheme, such as group critical illness insurance which we may get through our employer. There are several reasons for group insurance policies. The main reason is that often you can get better rates based on the number of policy holders in the group. So, if an employer offers group critical illness insurance, the employee may be able to get a more comprehensive plan and at a lower monthly premium than if he bought the policy as an individual.
Group Critical Illness - Group Critical Illness Cover
The employer may provide group critical illness cover insurance as an investment to their employees as well as being a benefit that may attract potential employees. Joint critical illness coverage may also be taken out by people who have a vested interest in the financial security of each other. An example is a law firm with many partners where the serious illness of one or more could hurt the entire firm. Or business partners can obtain group critical illness insurance in order to protect their shareholding in their business in case one of them is no longer able to work. Similar to individual policies that protect spouses, group policies can protect people with connected financial interests.
Group policies have always been popular because they usually offer a broad spectrum of cover at a reasonable price. The volume of policy holders covered allows the insurance company to provide the insurance at lower rates. In addition to the employer providing the cover for their employee some consumers may be able to buy group critical illness cover insurance through their employers, taking advantage of the competitive price. Just like an individual critical illness policy, group critical illness cover will provide financial assistance in case the policy holder became so sick that they are no longer able to work. The tax-free lump sum payable may be used to pay debts and/or mortgage, thus helping to ease a little the worries of the family.
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