What is group life insurance?

Group life insurance offers a death benefit to the insured, only in this case, more than one person is covered by the policy. Generally, group policies are purchased by employers or labor organizations to cover employees or members of a specific group, as part of a larger benefits package

Group coverage – usually in the form of term life insurance that gets renewed on an annual basis – tends to cost less than individual policy premiums, so if your employer offers this benefit to you, it would be wise to take it, especially if your present policy is inadequate, or you do not already have a policy of your own.

Your employer would keep the actual policy, whil you would receive a certificate of insurance. You would also be able to name your own beneficiary.

Your coverage generally ends when your employment does. You may have the option of converting to an individual policy in that event, but conversion premiums are usually much higher.