Question on Group Life

[Labman]

Who sells a portable group life product? Also, in a group with paid and volunteer personnel would there be any issues in putting in a portable group product? Thanks!

 

[scagnt83]

Cinci life has a portable group life product

 

[LGilmore]

Almost all group life sold has a portability provision. Usually a person wouldn't want it.

As far as group covering non-paid positions, I don't think so as group usually has an employer-employee relationship.

But hey, it's been a while since I did any group life outside of a few groups. Not usually a big income producer.

 

[Labman]

Thanks guys. I've got in touch with Standard and they may write it. Just have to get them some census information first.

 

[LGilmore]

Let us know if they will underwrite volunteers. My bet is no.

 

[Labman]

The Standard rep believe they may as apparently Standard has written volunteers before. It may very depend on the mix of the group though. I'll let you know when I get an answer.

 

[LGilmore]

Thanks,

I would think it falls under insurable interest, an employee?yes. a volunteer? hard to draw a legal connection between a business and unpaid help. Would standard underwrite summer interns?

 

[jemelton]

Thanks,

I would think it falls under insurable interest, an employee?yes. a volunteer? hard to draw a legal connection between a business and unpaid help. Would standard underwrite summer interns?

It has nothing to do with insurable intrest because the business is neither the owner or beneficiary.......

 

[scagnt83]

It has nothing to do with insurable intrest because the business is neither the owner or beneficiary.......

If the business is the Payor then insurable interest colud come into play.

The problem with the volunteers is that this would be a payroll deducted product.
If they are volunteers, then there is no paycheck to deduct the premiums from.

Then you run into the problem of the volunteers having to cut checks to the business so that the business can pay the premium for them; this is an enormously huge hassle for any business, good luck getting the owner to agree to this.


So basically the only way to make this work is for the employer to pay the premiums as an added benefit to the volunteers....

 

[LGilmore]

Thank scagnt83. Yup.

Jeme, probably the wrong use of words on my part. Scagnt did a better job expressing my thoughts on the subject.

It would be an administrative nightmare.
there is a relationship between employer and employee. volunteers do not have the same situation.