A trustee group life insurance policy typically covers members of a defined group, often associated with an organization like an employer, union, or professional association. Eligibility criteria are established by the trustee of the policy, usually representing the group. These criteria might include factors such as active employment status, membership standing, or having completed a probationary period. For instance, a company might offer coverage to all full-time employees after a 30-day waiting period. Specific details regarding qualifications for coverage are outlined in the policy documentation.
This type of coverage provides life insurance benefits to eligible individuals without requiring them to undergo individual medical underwriting. This can be particularly advantageous for those who might otherwise find it difficult or expensive to obtain individual life insurance. Historically, such policies have served as a valuable employee benefit, contributing to financial security for families in case of an employee’s death. The group structure allows for cost-effective premiums and streamlined administration.
