The Policy

The policy contract is usually of the one-year renewable-term type, subject to rate adjustments as explained below. In some cases five- or ten-year term, endowment, and ordinary life policies are issued under the group plan. The general provisions of the contract covering grace for the payment of premiums, incontestability, restrictions in case of suicide and insanity, etc., are much the same as in regular life policies. The face value may be an arbitrary sum for each individual (usually $1,000) or may be equal to the salary of the insured, with a limit of $5,000 on any individual life. As stated in the definition, a blanket policy is issued covering the group. This policy is held by the employer and is accompanied by a register on which is recorded the particulars concerning each life insured. Some companies provide a certificate of insurance to be issued to each employee. A duplicate of the register is kept at the home office of the company and all changes in personnel must be recorded in both the original and the duplicate.