Group Life Insurance: What You Need to Know

According to one study, more Americans now have life insurance through their employer than individual life insurance coverage. With group life insurance, employees are covered under a single agreement or contract. One of the major benefits of group life insurance is that it is usually cheaper than what employees pay for similar coverage with an individual life insurance plan. However, group life insurance doesn’t always give you all the coverage you need.

You Might Have Less Options

The owner of the group life insurance policy decides the amount of coverage for you, with means your options are limited and you might not necessarily get the coverage you need for you and your family. Benefit payouts for employer-paid life insurance are usually smaller than individual plan payouts, which means your loved ones might not have enough to cover their expenses after you die.

Your Coverage Depends on Your Employment Status

If your group life insurance is provided by your employer, you won’t be able to keep it if you quit or are fired from your job. Even if you have to leave your job for health reasons, you won’t be covered unless you are employed by the owner of the group plan. Some group life insurance plans have an option to change your policy into an individual life insurance policy if you end your employment. If your plan has this option, you should consult with an insurance administrator as soon as possible to make sure you get the coverage you need to protect your loved ones after you are gone.

Do you have questions about group life insurance or individual life insurance policies? Our professionals at Insurance Specialists, Inc. are here to help you understand the details of your policy so you can ensure your family’s interests are protected.

To talk to a member of our team, call (888) 451-0883 to schedule your appointment today.