Tennessee Life Producer Practice Exam

What form of insurance is often used in employee benefit plans for group coverage?

1. Supplemental Accident Insurance

2. Group Disability Insurance

3. Group Life Insurance

4. Long-term Care Insurance

The correct answer is: Group Life Insurance

Group Life Insurance is commonly utilized in employee benefit plans for group coverage because it provides a cost-effective way to insure a large number of employees under a single policy. This type of insurance can offer basic life coverage for all eligible employees, often with the option to purchase additional coverage at group rates. One key advantage is that group life insurance typically does not require individual health assessments during enrollment, making it easier for employees to obtain coverage. The employer often pays for a portion of the premium, further incentivizing participation. This makes group life insurance an appealing employee benefit, enhancing retention and attracting talent. In the context of employee benefits, the other types of insurance listed serve different purposes. Supplemental Accident Insurance is designed to provide additional coverage for accidental injuries beyond what standard health insurance covers. Group Disability Insurance offers income replacement when an employee cannot work due to illness or injury but is not specifically a life insurance product. Long-term Care Insurance focuses on covering expenses associated with long-term care services, which are not typically provided through employee benefit plans in the same manner as life insurance. Thus, Group Life Insurance stands out as the most relevant coverage in the context of employee benefit plans.