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What
is Group Life Insurance?
Group life insurance is a policy issued to an employer, association, or
other organization. Employees or association members may receive certificates
rather than policies.
Group life insurance policies are usually annual, renewable term
with an option to convert to an individual policy when you leave the company
or association.
Many employers offer insurance under a group plan, and sometimes pay part
or all of the premium. A medical exam is usually not required for insurance
purchased this way, and it can be much cheaper than coverage purchased
as an individual.
In some states, group life insurance policies must be convertible to permanent
insurance at the insured's option when the insured's coverage under
their company or association policy terminates. The converted policy will
probably be much more expensive than the group life insurance.
Some employers will allow insurers to send agents or enrollers into their
premises to offer policies to their employees. Policies offered in this
manner are different from group life insurance, and you should evaluate the materials
shown to you in the same way as if you were considering a purchase of an
individual policy through an agent.
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