Group Permanent Life Insurance
Definition - What does Group Permanent Life Insurance mean?
Group permanent life insurance is an permanent life insurance policy that is offered by an employer as a benefit to their employees. The insurance costs will be paid by contributions of both the employer and the employee and the amount will depend on the preferred benefits.
Insuranceopedia explains Group Permanent Life Insurance
When the employer sets up group permanent life insurance for their employees, they make them choose from a number of policies. The only common item among them is the death benefit.
The employee's contribution will vary across workplaces. An employer and employee may pay an equal share of the premiums or they may decide to pay a larger portion of them.
Permanent insurance can also be used as an investment or savings vehicle. It is likely that an employee can get the cash value of the insurance once they quit their job, although an employer may keep it to finance another employee's insurance.