|
Group Life Insurance
Group life insurance is life insurance that is made available to you through your membership in a group. The most common type of group is an employer group, although some professional organizations also provide group life insurance as well.
Group life insurance is often less expensive than term or whole life insurance since the costs and risks of that insurance are spread across all of the people in that group.
Group life insurance has several pros and cons:
Pros:
- Less expensive than term or whole life insurance
- Often does not require a medical examination, so it can be one of the easiest forms of insurance to get
Cons:
- Life insurance is usually for a limited period of time. If your life insurance is provided by your employer, you usually lose that insurance if you leave your employer for any reason.
- Usually limited to 1x or 2x your salary. In many cases you will need more life insurance than is available through your employer.
In most cases, individuals will purchase life insurance to supplement that which they get through their group provider. To determine if you need more life insurance coverage, read our Q&A for How much life insurance do I need?
Continue reading our FAQ to learn about selecting a life insurance company.
|