What is a Group Life Insurance Policy?
Answer:
Group life insurance policies are policies that


cover a complete group of people. For example, the groups of people usually either work for the same employer or belong to the same organization such as a labor union. The organization obtains a group life insurance policy that covers the members of the group.

Group life insurance is generally much more affordable than an individual life insurance policy and is usually offered as part of a more comprehensive benefits package. When you enroll in group life insurance, you don’t actually get an individual policy. Instead, the employer or other organization is issued the policy and you get a certificate of insurance that proves that you are insured. You can designate a beneficiary to receive the death benefits should you die while covered.

Depending on your company’s benefits policy, the employer may pay all or a portion of the premiums. If you leave the company, you may be able to covert the coverage to an individual life insurance policy but you will pay significantly more. Not only will you lose the advantage of company paid premiums, you’ll also find that individual premiums are usually dramatically higher than group premiums.
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