Collective Life Insurance

If you are paid, this life insurance form can be offered to you by your employer or your trade union.
In General, it is about one temporary insurance (in theory up to 65 years) covering a group people under a contract collective term. A certificate is given to you attesting your coverage. When it is an important group, it often arrive that no justification of assurability, medical or other, is required.
The insurance group is one of the capital element of your total coverage. But the protection of which you profit can end as soon as you do not being part of the group anymore. Check if the mode allows you to transform your insurance in individual insurance if you leave the group, or if the collective cover ends for any other reason.

Group Insurance Price and Cost

If it's easy to fix the price of one manufactured good according to materials cost and production expenses, it's different for a life insurance policy, which differs even from dwelling or car insurance policy since it can remain in strength during 50 years or more. Insurance companies can in any way of knowing their costs exactly, theirs incomes of placement or theirs future technical results. In consequence, they make long-term projections which rest on statistics or actuarial data, with the mortality tables assistance, the death rates with the various groups of population age. They also melting their estimates with expenditure regards, interest rate and futures death rate. These calculations are carried out by actuaries who receive actuarial mathematics training applied to the life insurance. Equitable Tarrifing Before approving your proposal, the insurance company must evaluate the degree of risk you represent. It is obvious that the risk grows with age and deterioration of your health. The pooling of similar risks makes it possible to obtain an equitable tariffing. The statistics data are joined together in order to divide the individuals by “categories of risk”. The insurance price - the premium - translated the risk evaluation. More the risk is weak for a category data, plus the premium is weak. To evaluate the risk, the insurer takes many factors into account: the age, the sex, the medical antecedents and the state of health. Thus, in average woman pay lower premiums than men. Indeed, the statistics clearly show than men. Same for nonsmokers who pay lower premium rates.