Group Life
Group Life Insurance is usually offered as part of your employees benefit package and covers an entire group of people. Policies are not based on an individual’s lifestyle habits or health factors but the employees are grouped together and rates are based on the risk of the group as a whole. The coverage costs are usually much less than if the employee purchased an individual policy.
+ Income tax-free death benefit.
+ Minimal or no medical underwriting.
+ Additional coverage options for dependents.
+ Monthly or annual payments keep the policy active.
+ Policies expire after a certain period (for group life, coverage is often renewed yearly by the policyholder).
+ The insurer pays a death benefit to a designated beneficiary for most causes of death.
+ Most employers don’t let you keep your group life insurance if you leave the company. If they do let you take the coverage with you, it’s usually more expensive to keep it than to buy a new policy on your own.