Continental General Insurance Helps Keep People Healthy

The Continental General Insurance Co. is based in Austin, Texas, and specializes in health insurance and life insurance plans for families, groups and individuals. Group health insurance is when one or more people have the same health insurance coverage through the same “group,” which most often is an employer. By law, any group of two or more people can band together and apply for group health insurance coverage, which generally is much more affordable than individual health insurance plans and easier to obtain.

Individual health insurance plans depend on the health of the individual and that person’s health history to determine the level of premiums to be charged for health insurance coverage. But group health insurance plans are based on a broad base of underwriting risks that are spread out among several people, so when a group health insurance plan is in force, there are ample people paying premiums to cover the costs of treatment for one person. But when an individual health insurance plan is in effect, the coverage generally costs much more due to the fact the expense must be covered by the premiums on that individual health insurance plan rather than the combine premiums of a potentially large group of people insured through companies like the Continental General Insurance Co.

While any two or more people can band together to form a group in order to buy group health insurance, the same cannot be said for life insurance. No state allows the formation of a group whose sole reason for existence is to buy group life insurance, which usually comes in the form of renewable annual term life insurance. To qualify for group life insurance rates, a group already has to exist, such as a group of business employees, a fraternal order or a sports club, for example. Once a group already is established with a specific purpose other than to qualify for group life insurance rates, then that group can solicit group term life insurance from companies like the Continental General Insurance Co.

Term life insurance from Continental General and other life insurance companies typically lasts for five years or more but expires after a set term unless renewed for what usually are higher rates. Because term life insurance plans usually do not result in a payout to the policyholder, the rates are much more affordable than they would be for whole life insurance plans with the same amount of coverage. And term life insurance plans often can be converted to whole life insurance plans if life’s needs change and term life insurance no longer is a viable option.

Term life insurance most often is used to help ensure the costs of buying a home, paying for college or running a business can be maintained in the event the head of the household is killed or disabled and no longer can provide for the family and business. And whole life insurance usually is intended to provide a legacy and financial cushion to ensure a family is not left destitute or suffers even more of a loss when a loved one passes on too soon. By Mike Heuer