Group Term Life Insurance

• Most group life insurance policies are yearly renewable term insurance policies. Under this type of policy, the people insured do not have to provide information regarding their ability to be insured as the insurance company and the employer will enter discussions to renew the policy each year based on the claims of the previous year. During this discussion period, the insurance company has the right to change the premium rate.
  
  

Accidental Death and Dismemberment Insurance

• This coverage can be included in the employer's group life insurance or group health insurance plan. Accidental death and dismemberment insurance is often equal to the benefit provided under the term life insurance plan when it is paired with group life insurance. This type of insurance will pay a benefit if a person dies due to an accident.
  
  

Group Cash Value Life Insurance

• This plan is less popular than group term life insurance because it does not receive favorable tax treatment. Under this plan, employees use their premium to purchase whole life insurance, and employees maintain coverage even after they have retired from the company. Companies often offer this plan as an option, which means that employees who wish to receive this coverage must pay a substantial portion of the premiums, unlike term life insurance where the premiums are paid by the employer.
  
  

Disability Coverage

• Short-term disability benefits are provided for a year or less, while long-term disability benefits are provided for at least a year. A person on long-term disability benefits can receive the benefit until they retire. Disability benefits are normally a percentage of a person's earnings or a specific amount.
  
  Most insurance policies consider a person totally disabled if "the disability prevents him from performing the essential duties of his regular occupation," according to Harriett Jones, author of "Principles of Insurance: Life, Health, and Annuities." When a person has been disabled for at least two years, according to Jones, a person is totally disabled if "the disability prevents him from working at any occupation for which he is reasonably fitted by education, training, or experience."
  
  When a person becomes disabled, they have a waiting period before they are able to receive disability benefits. For short-term disability coverage, this is usually one week if a person is disabled due to sickness, and there is no waiting period if a person is disabled due to an accident. Long-term disability policies normally have a waiting period of 30 days to 6 months. However, companies often coordinate their short-term and long-term disability coverage so that when short-term disability ends, a person can immediately start receiving long-term disability benefits.
  
  

Supplemental Disability Coverage

• Some companies may provide benefits when a person is partially disabled. Partial disability is defined according to Jones as "a disability that prevents the insured either from performing some of the duties of his usual occupation or from engaging in that occupation on a full-time basis". Partial disability benefits are a specific amount that is based on the total disability benefit payment.