Group life insurance is normally offered through your employer or employer group.
- Normally payroll deducted
- Normally Term Life based
- Normally has premiums based on an age range.
- 40 – 45 year olds one price
- 45 – 50 another price
Coverage normally lasts while you are employed by the offering group. Coverage normally terminates when you are no longer working for that employer, voluntarily or un-voluntarily.
Many plans will not offer a conversion option to a permanent plan at retirement or termination.
Many employer groups will pay for some or all of the cost for this coverage.
What are the common reasons for purchasing a Group Life Insurance Policy?
- Usually no exam is required.
- Can provide for loss of income at a death to your family.
- Can pay off debt or obligations.
- Affordable protection when you need it the most.
- When you are young, you may be the least likely to die, however; if you do, you have the most to lose! Loss of income for your family and large debts to pay off.
- It is very easy to obtain, normally just a quick form.
Who should buy Group Life?
- If your employer is paying the premium, everyone should accept the coverage.
- If it is cheaper than a term life this may be an alternative.
- If you have health problems you should for sure buy this policy.
Who should not buy Group Life?
If you want to make 100% sure that your coverage will be in force when ever you die, even if 105 years old, a group life may not be a good option for you. Most estate planning scenarios do not work well with group life. If you know your family’s history is less than ideal, you may want to consider a more permanent policy.
If you feel your job will be unstable you may want to lock in a policy that you own so you don’t lose it with your loss of employment.
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