4 Things to Know About Group Life Insurance

iQuanti: Group life insurance is a type of life insurance typically offered through an employer or other group, such as a labor organization. It can provide financial security for surviving family members in the event of the death of someone covered by the group policy. The most common type of group life is term insurance. This is different from an individual term life policy, or a permanent life insurance policy, such as universal life insurance or whole life insurance. 
If you’re covered by a group life insurance policy or thinking of electing coverage, here are four things you should know about group life insurance: 
1. It’s typically offered through an employer 
Group life insurance is usually offered through an employer and can be part of a complete benefits package for employees. Typically, employees can elect coverage during open enrollment. When electing benefits, you can designate one or more beneficiaries. Group life is often offered at little or no cost to employees. Your portion of the premium will be deducted from your paycheck. Unlike health or dental insurance, group life insurance premiums are typically not tax-deductible.
2. You may be able to purchase additional coverage
Depending on the employer’s plan, you may be able to opt for additional coverage at a cost. This change can usually be made during open enrollment. If you’re wondering how much coverage you need, you may want to think about your current life insurance needs as well as any life changes you’re expecting—such as getting married or having a child.
3. Coverage usually ends when you leave your job
For group life insurance, coverage is valid as long as you’re part of the covered group. In many cases, the group is the company you work for. This means coverage typically ends when you leave your job—whether through resigning, being terminated, retirement, or some other means. Some employers may offer the option to convert to an individual policy. To see if this is an option, check with your human resources department. 
4. It typically doesn’t require a medical exam
While some life insurance policies still require a medical exam and/or medical questionnaire, group life insurance typically does not. Coverage is often guaranteed to all group members. This can be beneficial if you have a pre-existing condition, such as diabetes, that would make it difficult to qualify for an individual policy.
Is group life insurance enough? 
The answer to this question can depend on your particular policy, how much coverage you have, your dependents, and your overall financial situation. Group life death benefits are often limited, smaller than an individual life insurance policy, and many people opt for additional coverage. If your group life insurance doesn’t meet your needs, you may want to consider supplementing with an individual life insurance policy.
Source: iQuanti