Group Life Insurance

What Does Group Life Insurance Mean?

Group life insurance is a type of life insurance provided to a group, typically by companies or large organizations. Many employers offer group life insurance to their employees as part of a benefits package to incentivize them to work for the company.

Insuranceopedia Explains Group Life Insurance

People who receive life insurance as part of a group plan often pay significantly less than they would for an individual policy, as companies frequently secure discounts by purchasing policies in bulk. Even with that bulk discount, group rates are not always cheaper than what a healthy non-smoker can find on their own, so it’s worth checking the average cost of life insurance before relying on the workplace plan alone. It’s common for employees to contribute a portion of their paycheck toward life insurance premiums. Term life insurance is the most common type of life insurance offered by companies in group plans. Coverage amounts under group plans are usually capped at one or two times salary, so workers who need more protection often shop the best life insurance companies for an individual policy on top of what their employer provides.