Group term life insurance is just like traditional term life insurance except the carrier issues a master contract to the employer and certificates of coverage to the employees.
Most GTL is nominal face amounts with the premium paid by the employer, but some plans may have a voluntary option where the employee can purchase additional coverage.
President, Lane Independent Agency, Southern California
Term Life Insurance is temporary life insurance. It is sold for a fixed period of time (term) and so long as the premium is paid, it will continue for that period and that period only, then end. After that a new policy must be bought, frequently at a substantially higher premium. Group Term, is term coverage which is bought through a group, usually at work, but sometimes as a member of an organization. The healthy folks usually pay more and the sicker folks usually pay less, so it all evens out for the insurance company. If your health is good, you usually will get a better rate on your own. When you leave the group or work place, you will lose your group term insurance. The best insurance is permanent insurance that you personally own, not through a group. This is Whole Life. You can keep it for your lifetime as long as the premiums have been paid up. The premium never goes up and it never ends, unlike term, where 97% of folks let it lapse, losing all the money they paid for term. You can get information on all these choices from an experience life agent. Gary Lane, Agent, New York Life. 949 797 2424, Thank you.
Group Term Life Insurance is life insurance that is offered to employees through a business, or sometimes to members of other types of groups. The employer may pay for it, and then allow you to purchase additional insurance at group rates.
If you buy group life insurance, be sure to find out whether it is "portable" at reasonable rates. Some of the saddest cases I have run across are persons who have relied on their employment for all the benefits, then have become disabled. Not only are their benefits lost, but they also cannot qualify for affordable coverage in the private market. Having life insurance "on the side" can protect you, whether or not you have employee benefits.
That is an excellent question! Group policies are those offered to a segment of the insured pool, like your company, for example. Your policies through work are group term policies, with a term of one year. Each year in the fall, you either renew the policy, or switch to a new one. The cost of the policy is lower generally for your employer if the group of you is generally healthy and claim free, and a larger group. Another type of group policy is like the type that companies like AAA or AARP will offer. They are also spread across a large pool, but theirs are based on your "age band", and increase in cost each time you progress into the next "age band" (typically every 5th year). In their case, the term period lasts until you turn 80, when they will end. I hope that helps, thanks for asking!
That is a great question! Your life insurance policy through your work place is a group life term policy. It is a group policy because the same conditions and terms generally apply to all members of your workforce, and it is a term policy because it ends one year after enrolling - which is why there is an enrollment period each fall that you re-up the coverage or change it. I hope that helps, thanks for asking!
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Most GTL is nominal face amounts with the premium paid by the employer, but some plans may have a voluntary option where the employee can purchase additional coverage.
If you buy group life insurance, be sure to find out whether it is "portable" at reasonable rates. Some of the saddest cases I have run across are persons who have relied on their employment for all the benefits, then have become disabled. Not only are their benefits lost, but they also cannot qualify for affordable coverage in the private market. Having life insurance "on the side" can protect you, whether or not you have employee benefits.