Group Life InsuranceGroup life insurance is a type of term life insurance offered by a company, organization, union, association, or pension fund to its employees or members. Group life insurance is typically offered as a piece of a larger benefit package. By purchasing coverage through a provider on a “wholesale” basis for its members, the coverage costs each individual employee or member much less than if he or she had to purchase an individual policy.

Those receiving coverage might not have to pay anything out of pocket for policy benefits, or they might elect to have their portion of the premium payment deducted from their paycheck. Individual proof of insurability is not normally a consideration in the underwriting of group life insurance. The entity purchasing the insurance policy for its employees or members retains the master contract.

People who elect coverage through the group policy receive a “certificate of credible coverage,” which will be necessary to provide to a subsequent insurance company in the event that the individual leaves the company, organization, union, or association and terminates his or her insurance coverage.