Group Universal Life Insurance

What Does Group Universal Life Insurance Mean?

A group universal life insurance policy is a universal life insurance policy purchased for multiple individuals. The underlying coverage works the same way as an individual universal life policy, with a death benefit and a cash value component, except the contract covers a whole group at once. These policies are typically bought by businesses seeking to provide benefits to their employees.

By purchasing life insurance for a group, both employers and employees can benefit from reduced premiums.

Insuranceopedia Explains Group Universal Life Insurance

Obtaining life insurance coverage through a group universal life insurance policy can be much more affordable than purchasing the same coverage individually. Employees who want to gauge how much they’re saving can check the average cost of life insurance for a comparable individual policy. Similar to other commercial products, bulk purchasing allows the supplier to lower prices due to the high volume of guaranteed business.

Businesses may offer group universal life insurance as a way to attract potential employees and differentiate themselves from competitors who do not offer similar benefits.