Group Permanent Life Insurance
What Does Group Permanent Life Insurance Mean?
Group permanent life insurance is a type of permanent life insurance policy offered by an employer as an employee benefit. Permanent coverage lasts for the insured’s lifetime rather than ending after a fixed term, which is the main difference between term and permanent life insurance. The insurance costs are covered by contributions from both the employer and the employee, with the amount depending on the selected benefits.
Insuranceopedia Explains Group Permanent Life Insurance
When an employer offers group permanent life insurance to employees, they provide a selection of policy options, all of which include a death benefit.
The employee’s contribution can vary between workplaces. In some cases, the employer and employee share the premium costs equally, while in others, one party may contribute a larger portion.
Permanent insurance can also serve as an investment or savings vehicle. In many cases, an employee may access the policy’s cash value upon leaving their job, although the employer may retain it to fund insurance for other employees. Employees who lose access to that cash value often shop for a private permanent policy instead, and some life insurance policies build cash value immediately, while others take years before any value accrues.
