GROUP LIFE INSURANCE
Group life insurance is a benefit most commonly offered by employers to their employees. With a group life insurance policy, the insurance contract is between the group and the insurance company, and the participating group members receive certificates of coverage. There are 2 main advantages of Group Life Insurance:
- It’s easy to qualify for coverage. Unlike an individual life insurance policy, where you might be rejected based on medical history or other circumstances, group life coverage is guaranteed and there are no medical questions. The insurer bases the premium on the risk of the entire group as a whole.
- When offered as part of a basic benefits package, the coverage is often free to the employee, with higher levels of coverage available at group rates.
Receiving life insurance as a benefit of employment is a great deal, but think of group life insurance as a supplement, versus a replacement, for an individual life insurance policy you buy on your own.
Experts generally advise against relying solely on employer-provided group life for protection because you don’t control the policy; the employer does.