Company XYZ offers a term life insurance plan to its employees. What documentation does each covered employee receive?

In a term life insurance plan offered by an employer to its employees, the documentation that each covered employee typically receives is the Certificate of Insurance. This certificate serves to outline the coverage details, including the amount insured, the terms of the policy, and important information regarding the benefits provided under the plan.

The Certificate of Insurance is essential for employees as it serves as proof of their insurance coverage and serves to clarify their rights and obligations under the policy. It is a concise document specifically designed for policyholders and differs from a full policy document, which may contain extensive legal language and detailed terms not necessary for everyday use by employees.

While other types of documentation, such as a policy document, could provide in-depth specifics about the group's insurance terms, they are not typically distributed to each employee due to their complexity. A coverage statement might summarize benefits but lacks the formal proof that the Certificate of Insurance provides. An insurance card is often associated with health insurance rather than life insurance, making it an unlikely document for term life plans.

Thus, the distribution of a Certificate of Insurance is the standard practice in employer-sponsored life insurance plans, allowing employees to easily reference their coverage.