19.7.1 Eligibility
Groups eligible for group life and health insurance can fall into any of the following categories.
Employer-Employee Groups
- Full-time employees of a single employer.
Labor Unions
- Members may work for different employers at different times, such as grocery store employees who may leave one food chain for another. Therefore, the labor union is the policyowner.
Trustee Groups
- A group of the employees of two or more employers together that the trustee holds for members.
Debtor Groups
- Credit life insurance is used as collateral for loans or other debtor purchases.
Association Groups
- Fraternal benefit societies, charitable organizations, etc. If the premium is contributory, at least 100 members must participate. If it is noncontributory, all members must be covered.
Any association of professionals who are qualified and licensed by the state can obtain association group life insurance. The association must have been in existence for two years, have been formed for a purpose other than obtaining insurance, and hold regular meetings on an annual basis at least.
Credit Unions
- The amount of life insurance coverage is based on the share balance held by the member. If a member has $5,000 in his/her account, then automatically there is $5,000 in group life insurance on that member until age 65.
Dependent Groups
- The dependent spouse and children of a covered member may be provided coverage for a maximum of 50% of the employee coverage. For instance, if Dan had a group life insurance policy for $50,000, his wife would be eligible for a $25,000 policy.
