Group life insurance, family-plan policies, classes as beneficiaries

Group life insurance is written for employer-employee groups, associations, unions and creditors to provide coverage for a number of individuals under one contract. Underwriting is based on the group and its overall risk classification, not the individuals who are insured.

The family-plan policy is designed to insure all family members under one policy. Coverage is sold in units, and usually the insurance covering the family head is permanent insurance. The insurance covering the spouse and children is level or decreasing term. These plans generally cover all children presently in the family. Children who are born later automatically are covered at no extra premium. The children’s coverage usually is convertible to cash-value insurance without evidence of insurability.

Insured people also may choose beneficiaries based on a class designation. This means that rather than specifying one or more beneficiaries by name, the policyowner designates a class or group of beneficiaries. For example, “children of the insured” and “my children” are class designations.

The various concepts of group life insurance, family-plan policies and beneficiary classes may be considered similar to Covenant theology in that God’s design for his people is that normally, salvation takes place in community. To be sure, a person is not saved simply because he is born into and reared in a community that is in covenant with God. God draws each of his elect persons to himself, and accomplishes on an individual basis, the work of regeneration, justification, adoption and sanctification. Nevertheless, it’s significant that when we read the New Testament, we find that God always redeems persons in the context of community. God saves people, and plants them in a company of believers.

It’s a telling thing that even baptism, which is not salvation itself but a pledge of God’s faithfulness pointing toward the spiritual reality of salvation, is rendered by someone else in the community. Hence, (Acts 2:38-39) “Peter said to them, ‘Repent and be baptized every one of you in the name of Jesus Christ for the forgiveness of your sins, and you will receive the gift of the Holy Spirit. For the promise is for you and for your children and for all who are far off, everyone whom the Lord our God calls to himself.'”

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Covenant theology