What Does Yearly Renewable Group Term Insurance Mean?
A yearly renewable group term insurance is a life insurance policy that covers a group of people and is renewed annually. Often, an employer or another entity, such as a labor organization, offers such a policy to its employees or members.
Insuranceopedia Explains Yearly Renewable Group Term Insurance
Often as a part benefit package, an employer purchases a yearly renewable group term insurance policy for its employees. They usually pay for most, if not all, the premiums. As the premium is often much lower, it can be advantageous for employees without coverage or without enough coverage. When you leave your employer, you also have the option of converting it to an individual policy; however, the conversion premiums may cost more for comparable individual policies. In such case, it is only beneficial if you are otherwise uninsurable.